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News > Chile

Chile: GDP To Decrease More Than Expected in 2020

  • In September, the bank predicted that the gross domestic product (GDP) would decrease between 4.5 and 5.5 percent.

    In September, the bank predicted that the gross domestic product (GDP) would decrease between 4.5 and 5.5 percent. | Photo: EFE/ Alberto Valdés

Published 9 December 2020
Opinion

Nonetheless, the BC's director Marcio Marcel acknowledged that "the retirement of pension savings has generated transitory increases in consumption, especially of imported goods, which have had a positive impact on sectors such as commerce."

Chile's Central Bank (BC) announced on Wednesday the economy would shrink between 5.75 and 6.25 percent, more than initially forecasted, as the result of the COVID-19 pandemic.

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The Central Bank's latest report indicates that "the macroeconomic scenario continues to show more uncertainty than usual, with projections highly conditioned to the evolution of the pandemic and its effects on the income of people and companies."

"Central Bank of Chile published Monetary Policy Report #IPoM of December 2020." 

Nonetheless, the BC's director Marcio Marcel acknowledged that "the retirement of pension savings has generated transitory increases in consumption, especially of imported goods, which have had a positive impact on sectors such as commerce."

In September, the bank predicted that the gross domestic product (GDP) would decrease between 4.5 and 5.5 percent. However, the authorities said that although some improvements and consumption increased following the release of pension funds, "the recovery has been slower than expected."

Nonetheless, the BC offers a more positive outlook for 2021 and estimates an expansion of the economy by 5.5percent to 6.5 percent.

  

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