Macroeconomic outlook report: Chile

During the first quarter of 2018, the Chilean economy recorded an acceleration of 0.93 p.p. in its year-over-year growth rate in comparison with the previous quarter, standing at 4.18%. The y/y growth rate of domestic demand stood at 3.77% in 1Q18, decreasing by 0.21 p.p. from the previous quarter. Regarding the labor market, the unemployment rate increased compared to the fourth quarter of 2017, reaching 6.70%, and the year-over-year growth rate of employment accelerated by 0.35 p.p., standing at 2.46%. The Chilean peso appreciated against the US dollar, registering an exchange rate of 601.94 $CLP/USD. Lastly, the inflation stood at 2%.

Macroeconomic overview

• During the first quarter of the year, the Chilean economy registered an acceleration in the year-over-year growth rate of GDP of 0.93 p.p. when compared to the previous quarter, up to a rate of 4.18%. This growth was mainly driven by the y/y growth of domestic demand, standing at 3.77%, due to the acceleration of both private consumption and investment, along with the positive contributions of external demand.
• As for the labor market, the unemployment rate increased by 0.17 p.p. to a rate of 6.70%. The year-over-year growth rate of employment reached 2.46%, accelerating by 0.35 p.p. when compared to the fourth quarter of 2017.
• The Chilean peso appreciated against the US dollar in 31.97 pesos per dollar during the first quarter of 2018, registering an exchange rate of 601.94 $CLP/USD. This appreciation was based on the loss of value of the American currency as well as on the increase in the price of copper, and on the better prospects for growth of Chile in 2018.
• The inflation stood at 2% in the first quarter of 2018, accelerating by 0.02 p.p. compared to the previous quarter, going back to the downward trend started in 2Q16.

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