According to Chilean economist Michelle Labbé, the drop in oil prices should lead to decreases in gasoline prices, although this will not be immediate. She added that the drop will not be great since, although there is a sharp drop in oil prices, there is also a rise in the exchange rate, which does not favor Chile.
New vehicle sales dropped in February, as international economic conditions deteriorated. In February of this year, 25,025 new units were sold, which corresponds to a 10.3% drop compared to the same month in 2019. In the first two months of this year a total of 57,129 new units were sold, which is equivalent to a drop of 11.4% over the same period last year. It is also the lowest figure since 2017.
Despite the rise of the dollar, the fall of oil by 24.6% and of copper by 3.5%, the terms of trade in Chile have improved. According to Felipe Alarcón of EuroAmerica, if one weighs the weight of oil on imports and copper on exports, the terms of trade have improved by nearly 13% so far this year. Of which nearly 6% did so on Monday.
Chile and Mexico are among the most unequal countries in the OECD, according to the organisation's biannual welfare report. In Chile, the most privileged 20% of the population in 2017 earned 10.31 times more than the least privileged 20%, the organisation's average is 5.4.
The sharp falls in global stock markets were also reflected in Chile, where IPSA fell 4.51%, its worst percentage drop since October 2019, to 4,035.80 points, its lowest level since 2016. The drop reflects the uncertainty in the oil market and the fears generated by the impact of the coronavirus in the world.