Before the Coronavirus was detected in Chile on 3 March there were about 700,000 unemployed in the country, and now it is about one million, the authorities reported. In March alone, the Labour Directorate received 300,000 unemployment letters from people who were shortly before participating in a workforce of some nine million workers in the country.
The mining company El Abra announced that it will modify its mining plan, reducing production by 40% from 110,000 tons to 65,000 tons per day, as well as carrying out redundancies due to the economic crisis generated by COVID-19.
Grape production season is very different this year. It started normally, the first containers from Chile arrived in China. However, the market lost momentum in response to the outbreak of COVID-19 in February. Even though many markets are reopening now, conditions are still far from positive. Sales are much slower and the price has lowered by 20%.
The biggest companies on the stock exchange could see a sharp drop in their profits in the first quarter of this year. BICE Investments projects a 29.1% drop in profits for companies under its coverage. LarrainVial expects a drop of 34.5%, Bci anticipates a drop of 36.9%. Itaú BBA projects a drop of 45%, and Inversiones Security estimates a drop of 53.7%.
Demand for mortgages in Chile fell by 12% due to the Coronavirus crisis, said Banco Santander. The bank said that it compared February's data with that of April 20 and this drop was observed. According to the bank, the global average of mortgage applications has fallen by 60% in recent weeks.