Market experts estimate Chile’s GDP will fall 4.8% in 2020

Market agents consulted by the Central Bank every month for the formulation of the Economic Expectations Survey, estimated that Chile's GDP will fall 4.8% in 2020, well below the 2.7% contraction that they anticipated a month ago and even worse than the forecasts released by the World Bank (-4.3% for Chile). Regarding the growth of the 2nd quarter, the experts project that the economy will decrease by 13%, lower than the 7.4% drop that was previously anticipated in May.

Bankruptcy of companies increased by 11% in May

According to the Superintendence of Insolvency and Re-entrepreneurship, bankruptcy filings (liquidations) increased by 11% in May compared to April, totalling 140 bankruptcy proceedings. This brings it close to the February and March records of 149 and 155, respectively. However, it decreased by 20% compared to the same month in 2019. So far this year, the figure reaches 704, which represents a 3.4% increase in relation to the same period last year.

The Treasury proposes a US $10 billion plan

The Minister of Finance together with the head of Social Development and the director of the Budget met with the expanded Finance commission, where they presented a proposal that would amount to US $10 billion, to reach an eventual agreement on social and economic matters, to face the crisis derived from the pandemic in Chile. They discussed increasing the amounts of the Family Emergency Income, bringing it from the current $65,000 (for the first month) to the $80,000 proposed by the opposition during the discussion in the IFE Senate.

Chilean citrus imports’ volume and quality look very promising

Bee Sweet Citrus imports their mandarins and navel oranges from Chile, and the season started on time this year. According to the company, "both the projected volumes and quality for the imported citrus are looking very good so far. The weather could be better in Chile, because they have been dealing with a drought, so more rainfall would be great. However, we are not anticipating any specific challenges for the season so far,”.

Sempra Energy & State Grid Int. Development to close sale of Chilquinta Energía

Sempra Energy and State Grid International Development Limited have jointly announced today that both companies remain firmly committed to completing the sale of Sempra Energy's equity interests in its Chilean businesses, including its 100% stake in Chilquinta Energía S.A. and are targeting June 24 as the closing date. In addition to Chilquinta Energía, Sempra Energy also intends to sell a 100% interest in Tecnored S.A., which provides electric construction and infrastructure services to Chilquinta Energía and third parties, and 100% ownership of Eletrans S.A.