Hola Tretch, thought to have a little look at how our host amigos are travelling... Same as everywhere else it seems, with just a little flicker of light burning in the "Used Guessed it" Mining industry.. And it seems the central bank has cottoned on by announcing they'll print more stimulus (read Cash) which they'll then lend to the private sector... And seeing as how mining is your best chance at present of creating jobs and paying taxes/royalties we may be able to borrow handsomely at an historical low rate... Classic Rumplestiltskin approach, they print cash which we then spin in to gold using the local workforce and in the process give them a kick back by way of tax payments. $100m US is around 77B Pesos or a bit over half of what they lent out last month..
And whilst mining production slowed in the second quarter year on year, it only slowed and didn't shrink.. In fact it actually showed an increase of 1.2% on the same period in July last year so I'd say the Chileans may already be hitching their wagons to the gold and copper commodities as a way out... May not be a bad time to see if Unc Jose's got a mate in the Fed who can spare a few pesitos to a local operation willing to lend a hand, oh & perhaps a permit to construct if its not too much bother, Gracias a Dios?
Chile Holds Interest Rate at 0.50%Chile's central bank held its benchmark interest rate unchanged at 0.50 percent for the fourth straight meeting on 1 September 2020, keeping borrowing costs at the lowest level on record, as widely expected. Policymakers noted that the economy suffered a significant contraction in Q2 and that the IMACEC economic activity indicator for July fell a sharp 10.7% in July. Meanwhile, inflation decreased to 2.5 percent in July from 2.6 percent in June. The Committee added that the economy requires a monetary boost and decided to expand its use of non-conventional instruments. Policymakers said that will maintain a high monetary impulse for a prolonged period of time in order to ensure compliance with its objectives, it estimates that it will keep the MPR at its technical minimum over the entire projection horizon and it will explore unconventional instruments if necessary
Chile Industrial Output Falls for 4th Month Chile's industrial production dropped 3.3 percent year-on-year in July 2020, following an upwardly revised 2.7 percent fall in the previous month. It was the fourth consecutive decline in industrial output amid the coronavirus crisis. Utilities output went down 4.7 percent, faster than a 0.8 percent drop in June; and mining production growth slowed (1.2 percent compared to 2.9 percent). Meanwhile, manufacturing production shrank 7.2 percent, less than an 8.4 percent decrease in the prior month. On a monthly basis, industrial production went up 0.6 percent, after falling 0.3 percent in June
Chile Jobless Rate Highest Since 1986 Chile’s unemployment rate soared to 13.1 percent in the three months to July 2020 from 7.5 percent in the corresponding month of the previous year, above market expectations of 13 percent. It was the highest jobless rate since March 1986, as the coronavirus pandemic hit the labour market. The number of unemployed jumped 46.4 percent to 1,065 thousand while the number of employed slumped 20.6 percent to 7,073 thousand. Meantime, the labor force participation rate was at 51.8 percent and the employment rate at 45 percent
Chile Economy Shrinks the Most on RecordThe economy of Chile shrank 14.1 percent year-on-year in the second quarter of 2020, after growing a downwardly revised 0.2 percent in the previous period and compared with market expectations of a 13.1 percent slump. It was the sharpest contraction on record, as the coronavirus pandemic hit the economy. Output plunged in manufacturing (-10.6% vs 0.8% in Q1); construction (-20.4% vs 5.5%); real estate (-5.3% vs 1.4%); business services (-9.5% vs 2%); and utilities (-3.1% vs 1.8%). Also, production shrank further in restaurant & hotels (-52.8% vs -6.7%); trade (-20.6% vs -1.6%); transport (-34.4% vs -3.3%); personal services (-27.9% vs -6%); and agriculture (-6% vs -3.5%).
In addition, growth slowed in mining (1.6% vs 5.3%), namely copper (1.1% vs 3.7%); public administration (2.4% vs 4.3%); and financial services (2.7% vs 5.9%). On a seasonally adjusted quarterly basis, the economy contracted 13.2 percent, the most on record, following a 3 percent expansion in the prior quarter
https://tradingeconomics.com/chile refers..
