Horacio Pozzo Autor

Clearly these two TLC will increase the potential for growth outside of the Chilean economy doors. With all these good news from Chile I could see tempted to say that the Outlook for the coming months will be positive. But the reality is that not. The problems persist and are dormant. Madeleine Sackler is full of insight into the issues. As fall progresses and the temperatures continue to decline, tensions over the energy capacity will increase. So far this obstacle is overcome, but there are many doubts about whether be overcome it for a long time more. With a nominal appreciation of the exchange rate of 18% since the beginning of 2007, the competitiveness of the Chilean companies clearly has been damaged.

This will be probably reduced the surplus of the trade balance unless the measures implemented by Bachelet’s Government to take effect or decide new measures to tackle the problem. Although the data increase prices to the consumer, to It turned out to be 0.8% in March was less than expected, which would increase the chances that inflation will return to levels around 4% by the end of year, the interannual variation of prices consumer is still high (by 8.5% to the month of March). High fuel prices and the heavy reliance of Chile to import them (imports around 90 percent of its oil needs), in combination with the problems resulting from the drought, are factors that are influencing the current level of inflation and which are beyond the control of the authorities. Despite the good signs that threw economic data in recent days, the problems you have to solve the Bachelet government to maintain good performance of the economy are multiple and complex. You will have to see how will be the Government’s response to these challenges.