Chile President Sebastián Piñera promulgated today the law that establishes a new tax system agreed with the opposition with which the government expects to raise $ 2.2 billion per year. During a ceremony in La Moneda, he requested higher income sectors an "additional effort", highlighting the 40% increase in personal tax and the surcharge to properties over CL$400 million. Piñera praised the new system as "much more pro-entrepreneurship, investment and growth than we had."
Wind turbine manufacturer Nordex has won a 156MW order for a wind project in Chile’s Los Lagos region, continuing an order spree in Latin America. The German-Spanish OEM will supply 33 of its N149/4.0-4.5MW machines to the project 30kms north of the city of Puerto Varas. The turbines will be installed on 145 meter tubular steel towers. Completion of the wind farm is seen next year, when it is slated to supply 180,000 homes with clean power.
Chile President Sebastián Piñera called on Chileans to help the country “live in peace” ahead of an anticipated fresh outbreak of protests in March. On Sunday, the annual music festival in Viña del Mar saw police clash with hooded protesters outside the heavily fortified event. Cars were torched and a well-known hotel (Hotel O’Higgins) vandalised. A Cadem poll showed that 85% of business leaders felt Chile was moving in the “wrong direction”, and 99% believed March would bring further polarisation.
Chile's exports fell 17% ($ 2.6 billion) and imports 16.8% ($ 2.1 billion) in the first fifteen days of February, according to official data. Fruit products and food were the most affected export sectors: cherry (-87.6%), hake (-58%), pork (-51.42%), avocado (-35%), blueberries (-15 , 89%). Imports of consumer goods fell 15%, being mobile phones (-53%) and automobiles (-49%) where the impact was greater. Purchases of capital goods also fell 17%.
Chile’s peso sank by 1.05% (810.70/811 per dollar) on Monday amid fears about the spread of the coronavirus. The American currency ended the session with a rise of CL$5.60 comparing to Friday after a peak of CL$813. This is was highest level since last November 29, when it touched $ 810.00. "If there is a greater expansion of the coronavirus, the currency pair could perfectly show a greater momentum, especially if a new social unrest in Chile creates less local activity in the coming months", said Ricardo Bustamante, Head of Trading Studies at Capitaria.