May 14, 2021

Coronavirus effects in the Chilean economy are “limited”, says the Government

The effects of the coronavirus on the Chilean economy remain “limited”, although they are a “flank of monitoring and concern,” the country’s finance minister Ignacio Briones said Friday in a meeting with foreign correspondents.

The minister explained that COVID-19 will affect the growth of the Chinese economy between 0.2 and 0.8 points, so Chile can be affected as the Asian giant is a fundamental partner and to which it sells almost 50% of Your copper exports.

“What happens there is an important consequence for us, for our traditional export sector and also for the copper or mining sector. We have already seen it in the price of copper, which from mid-January until now has fallen by approximately 10% and that means less tax revenue, among other things, “Briones said.

In addition, he indicated that a fall in China’s economic growth affects global growth and, therefore, other business partners in Chile, so the country could also be affected in this way.

“And that worries us and we are monitoring strongly, and yet we have no major impacts on the Chilean economy,” he said.

The senior official said that the coronavirus exports to China have experienced “delays in the logistics system but not a flagrant disruption of the sector.”

1.3% GROWTH BY 2020

Regarding Chile’s economic growth perspective for 2020, Briones maintained that the Government estimates that this will be 1.3%, which is two points less than expected before October 18, 2019, a crisis will erupt. social in the country unprecedented since the return of democracy in 1990.

This 1.3% growth estimate is relatively higher than the one contemplated by the Central Bank of Chile, which is expected to be 1%, “but it is very much in line with the market expectations of local and international analysts,” he said. the minister

“This expectation, although it marks a decline with respect to the pre-October 2019 scenario, which was 3.3%, yet it is a scenario of positive growth. We would like it to be higher but given the scale of the crisis we have had, it seems to us that it’s a fairly reasonable scenario, “said Briones.


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