Chile high risk, unstable politically, plus recession. Over...

Chile high risk, unstable politically, plus recession. Over strong reliance on deminishing copper grades and then there's China. Canada no such issues.

https://www.coface.com/Economic-Studies-and-Country-Risks/Chile

RISK ASSESSMENT

ECONOMY TO ENTER INTO RECESSION

In 2023, activity will enter recession, mainly dragged down by a contraction in household consumption (65% of GDP). The index will be affected by the gradual dry-up of the excess of liquidity linked to the withdrawal of pension savings, a weaker job market, durably historically high inflation and by the lagged impact of tighter credit conditions (policy rate stands on hold at 11.25 % per year since October 2022, up from a minimum of 0.5% up to July 2021). Meanwhile, the latter will also affect gross fixed investment (24% of GDP), which is expected to drop, influenced as well by eroding business confidence and due to investors being likely to remain somewhat cautious amid the prolonged uncertainty prompted by the ongoing process to redraft the Constitution. Conversely, exports are expected to bring a positive contribution to activity. They should mildly expand, driven by the lithium boom (accounting for 8% of all foreign sales in January-November 2022, up from 1% in the same period of 2021) and by relatively higher growth in China (the main destination of foreign sales), as the economy reopens from the COVID-19 lockdowns. This could also support copper prices. Mining accounted for 62% of total foreign sales in 2021, with the red metal representing 57% on its own.