Skip to main content

Macroeconomic outlook report: Chile

Second quarter of 2017

During the second quarter of 2017, the y/y growth rate of Chilean GDP stood at 1.04%, after increasing by 0.94 p.p. with respect to the previous quarter. The y/y growth rate of domestic demand reached 3.81% in this period, after increasing by 1.05 p.p. over the first quarter of 2017. With regard to the labour market, the y/y growth rate of employment increased by 0.68 p.p., reaching a rate of 1.66%, while the unemployment rate increased by 0.50 p.p. to 6.90%. The Chilean peso depreciated with respect to the dollar in this quarter, reaching 664.15 $CLP/USD. Inflation stood at 2.30% in 2Q17, after decreasing by 0.45 p.p. with respect to the previous quarter.

Macroeconomic overview

  • Chilean GDP y/y growth rate experimented an increase of 0.94 p.p. during the second quarter of the year with respect to the previous one, recording a rate of 1.04%. The main driver of this behaviour was the evolution of national demand, as external demand recorded a weaker growth rate in this quarter. The OECD forecasts Chilean GDP growth at 1.55% and 2.85% in 2017 and 2018, respectively.
  • Domestic demand registered an increase of 1.05 p.p. in its y/y growth rate, standing at 3.81% in 2Q17. The acceleration of private consumption growth has supported domestic demand in this quarter.
  • Regarding the labor market, the unemployment rate stood at 6.90% in the second quarter of 2017, which represents an increase of 0.50 p.p. when compared to the previous quarter. On the other hand, the y/y growth rate of employment in Chile increased by 0.68 p.p. when compared to the previous quarter, standing at 1.66% in 2Q17.
  • The exchange rate of the Chilean peso stood at 664.15 $CLP/USD in this period, which represents an appreciation of 8.95 pesos per dollar when compared to the previous quarter. The volatility of copper prices and international capital flows, as well as the interest rate increase adopted by the Federal Reserve, have caused the depreciation of the Chilean currency this quarter.
  • Inflation stood at 2.30% in 2Q17, after a decrease of 0.45 p.p. when compared to the previous quarter. Thus, the y/y growth rate of Chilean CPI continued to display the downward trend which began on 2Q17, influenced by the appreciation of the Chilean peso and low inflationary pressures on the demand side.

For more information, click here to access the executive document in pdf (only avalaible in Spanish).

© GMS Management Solutions, S.L., 2018. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.