Economy weathering regional economic crisis well.(Chilean economy)(Brief Article)(Statistical Data Included)

Chile's economy appears to be resisting many of the economic pressures its neighbors are experiencing, posting strong first-half growth of 3.5%, as its policy of low real interest rates, and the resulting weak peso, appears to be succeeding in insulating it from the regional slowdown. Although the prices of the country's main export, copper, have been depressed, Chile still managed to post a $1.1 billion trade surplus in the Jan-July period, which regardless of the currency's weakness, was nonetheless impressive. Indeed Chile looks set to meet its prediction of 4% growth this year, down from earlier predictions of a 5.4% expansion. This setting looks ideal for investors seeking to return to the region, placing them in a position to take advantage of the weak peso, and acquire assets at what are fundamentally cheap dollar values. This opportunity is further underlined by the recent announcement by the central bank that it had allocated $4 billion to prop up the currency, and developments in Argentina

which should help the region to stabilize, at least for the time being.

Print Get the Mag Weekly Updates