Macroeconomic outlook report: Chile

During the third quarter of 2017, Chile’s GDP recorded an acceleration of 1.13 p.p. in its year-over-year growth rate in comparison with the previous quarter, which amounts to 2.17%. The domestic demand’s year-over-year growth rate dropped to 2.49%. With regards to the labor market, employment’s year-over-year growth rate increased when compared to the second quarter up to 2.26%, while the unemployment rate went down to 6.73%. The Chilean peso appreciated against the dollar, registering an exchange rate of 642.65 $CLP/USD. Finally, the inflation stood at 1.67%.

Macroeconomic overview

• During the third quarter of the year, the Chilean economy registered an acceleration in the year-over-year growth rate of GDP of 1.13 p.p. when compared to the previous quarter, up to a rate of 2.17%. This growth was mainly driven by the performance of the external demand as well as by the increase in the gross fixed capital formation.
• Furthermore, the year-over-year growth rate of the domestic demand experienced a decrease of 1.32 p.p. with respect to the second quarter, registering a growth rate of 2.49% due to the deceleration of the public consumption.
• As for the labor market, the year-over-year growth rate of employment increased to 2.26% as compared to the second quarter, whereas the unemployment rate went down by 0.17 p.p., standing at 6.73%.
• The Chilean peso appreciated against the dollar, registering an exchange rate of 642.65 $CLP/USD. This appreciation resulted from the loss of value of the American currency as well as from the increase in copper price and the better perspectives of the Chilean economy.
• The inflation continued with the downward trend initiated in 2016 and it stood at 1.67% during the third quarter of 2017, which is 0.63 p.p. down the rate registered in the previous quarter.

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