The unemployment rate in Chile was 10.3% during the December 2020-February 2021 quarter, according to the National Statistics Institute of Chile (INE). The figure implied an increase of 2.5 percentage points in twelve months, as a result of the reduction of the labour force (-7.4%) lower than the decrease presented by the employed (-9.9%).
President Sebastián Piñera signed into law an economic aid package for the middle class that includes the delivery of a bonus and an increase in the coverage of the Emergency Family Income (IFE). The total cost of both measures is $6 billion.
Chile’s copper production fell to its lowest monthly production level for two years as output reached 425,500 tonnes, according to state copper agency Cochilco, 6.9% lower than the 457,200t recorded in January and 5% down on the 448,000t in February 2020.
Fitch Ratings has assigned an 'A-' rating to Chile's $1.5 billion notes maturing April 15, 2053. The notes have a coupon of 3.5%. Chile issued the bonds in accordance with its Sustainable Bond Framework, and proceeds will be used to fund projects that qualify as eligible "green" and "social" expenditures.
Chile’s central bank kept its benchmark interest rate steady at 0.5% on Tuesday, in line with expectations, as the country continues with efforts to revive the economy while also battling a second spike in the coronavirus pandemic.
Chile exported 352,949 tons of cherries, which is 54.4% more than in the previous season, according to data released by the Federation of Fruit Producers of Chile (Fedefruta) and the consulting firm iQonsulting.
The Gross Domestic Product (GDP) in Latin America and The Caribbean fell 6.7% in 2020, according to the World Bank's projection. However, the organization projects a growth of 4.4% in 2021. For Chile, the organization forecasts the country's GDP to expand 5.5% in 2021, which is an improvement compared to the previous projection (4.2%). For 2022, the World Bank estimates a growth of 3.1% and in 2023 2.5%.
The Monthly Business Confidence Indicator closed March with a value of 55.88 points, which is 0.15 points higher than February's reading. With this result being the third consecutive increase, it marks it as the highest value since February 2018 when it reached 57.38 points. However, this survey was conducted in early March which was before the increase of COVID-19 infections.
The government agreed to launch a bond and a solidarity loan, which can be applied for up to three times, to support life annuity pensioners. The bond would have a fiscal cost of $50 million, while the solidarity loan would cost the state $133 million.
As of Thursday 25 March, 69% of Chile's population will be quarantined following the implementation of COVID-19 measures. In the Metropolitan Region (RM) the impact reaches 77% of the population.According to Clapes UC economist Valentina Cortés, in terms of production, 64.3% of GDP will be under quarantine.