Chile’s Budget Office said on Monday the country’s economy could shrink 6.5% in 2020, a far deeper hole than predicted just two months prior as the pandemic continues to pummel the world’s top copper producer. The budget office said in its second-quarter public finance report that it saw inflation at 2.8%, down from its April prediction of 3.3%. Domestic demand, meanwhile, is expected to decrease by 9.8%, versus an estimated drop of 3.3% previously. The report put the 2020 copper price at $2.48 per pound, up from a previous estimate of $2.36 per pound in April.
After an agreement unanimously approved by the six unions that group all of the Rol B workers and the administration, the El Teniente Division of Codelco agreed on a 14×14 schedule, which consists of 14 days of work for 14 days of rest. According to Codelco, this schedule “reduces the risk of contagion, by reducing the amount exposed at work and exposure in common areas. It also enables workers to take their rest in quarantine format domiciliary and reduces the frequency of bus trips and transfers made in the region by more than 30%”.
According to a report prepared by the National Chamber of Commerce (CNC) during the first quarter of this year, 14% of e-commerce transactions were informal. This is in line with the last quarter of 2019, when it was 15%. The CNC notes that if the total spending on online purchases from retail was US $596 million between January and March, US $83.4 million of that amount was allocated to informal purchases in digital retail, which do not pay any type of tax.
Chinese authorities confirmed that there are no restrictions on the importation of Chilean salmon, despite European salmon being blocked due to unfounded fears it had served as a carrier of the coronavirus. Sernapesca Director Alicia Gallardo, also announced Chinese officials had carried out an unprecedented remote joint inspection of several Chilean salmon processing plants.
Empresas Copec has hired JP Morgan to explore the sale of its 39.8% stake in Metrogas, Chile’s main natural gas distributor, which Naturgy controls with the rest of the shareholders. Copec considers its participation “very attractive for certain types of investors.”