Chile’s GDP decreased by 14.1% during the second quarter due to the impact of COVID-19

In its National Accounts Report, the Central Bank reported that during the second quarter of 2020, Chile's GDP fell 14.1% compared to the same period last year. According to the report, the reason for this drop is due to the economic effects of the pandemic which influenced the mobility of people and the normal operation of productive establishments.

Congress passes tax package bill which include reductions of up to 25%

The Senate Chamber passed a bill with tax measures for economic recovery which aims to inject liquidity to SMEs and companies. The bill defines a temporary reduction from 25% to 10% of the First Category Tax for SMEs under the Pro-SME Regime for income obtained between 2020 and 2022. These companies will also be halved in the rate of provisional monthly payments. It also allows companies under the Pro Pyme Regime to request a refund of the accumulated remainder of the VAT tax credit, which is obtained from the declaration of said tax that is made in July, August or September 2020.

BHP made attributable profit of $8 billion for 2020 financial year

According to BHP Chief Executive Officer, Mike Henry, BHP delivered a strong set of results for the 2020 financial year. BHP made an attributable profit of $8 billion and an underlying attributable profit of $9.1 billion compared to last year. Profit from operations of $14.4 billion and an underlying EBITDA of $22.1 billion at a margin of 53%, with unit costs reduced by 9% at major assets due to foreign exchange produced, better productivity and operating stability.

LATAM reported losses of $890 mn

LATAM delivered its results for the second quarter, reporting losses of $890 million. It surpassed the estimates of the consensus of analysts, by 34%, compiled by Bloomberg which projected $663 million. Thus, the airline increased its red numbers by 1,316% compared to those registered in the same period last year.

Rice sector could place surplus production in Chile after trade agreement

Colombia has been the traditional stronghold to place the Ecuadorian rice surpluses which has been conditional on the opening of contingents. The recently negotiated trade agreement between Ecuador and Chile opens the possibilities for national rice producers to place part of their production in that market. Chile has a per capita rice consumption of 10 kilos, while Ecuador has 50 kilos. Within the treaty that was signed last week with Chile, Ecuador obtained quotas to be able to enter products such as rice, corn and sugar into that market.