Chile's economic outlook is "quite favourable" despite months of political unrest in the country, Finance Minister Ignacio Briones told foreign correspondents in Santiago. "We should stress that we have a scenario of positive growth," Briones said. The government forecasts a 1.3% growth for 2020, "relatively higher" than the central bank projection of 1%, noted Briones. Prior to the outbreak of anti-government protests in mid-October, a 3.3% expansion in gross domestic product (GDP) was forecast.
Chile’s peso sank by 1.05% (810.70/811 per dollar) on Monday amid fears about the spread of the coronavirus. The American currency ended the session with a rise of CL$5.60 comparing to Friday after a peak of CL$813. This is was highest level since last November 29, when it touched $ 810.00. "If there is a greater expansion of the coronavirus, the currency pair could perfectly show a greater momentum, especially if a new social unrest in Chile creates less local activity in the coming months", said Ricardo Bustamante, Head of Trading Studies at Capitaria.
Chile government and security forces are preparing for a potential revival of last October violent unrest initially triggered by a student protest which strongly hit the country economy. They are retraining 2,600 members of the security forces in protest-control methods and human rights, acquiring new armoured cars, drones and body cameras, as well as trying to improve their intelligence services.