Although part of the economic setback that the country will experience is due to the pending adjustment of the high levels of liquidity that have not yet cleared up, uncertainty and its impact on investment are the biggest risk factors.
The big business asked for a “serious” constituent process to boost investmentwhile ECLAC stressed that the political agreement that opens a new process might improve investment projections.
However, the agency predicted that The Chilean economy will contract 1.1% next year, posting the worst performance in all of Latin America.
bad projection
Joining the International Monetary Fund and the OECD, the Economic Commission for Latin America and the Caribbean (Cepal) updated its projections for Chile; and anticipated that 2023 will have negative growth, standing out for its poor performance compared to the region.
Although ECLAC’s growth projections for the entire bloc of countries dropped from 1.7 to 1.3% next year, the Chilean economy is well below averagewith a decrease of 1.1%, being the country with the worst performance in the entire region.
What is behind this result? “Specific factors”they said in the organization, related to the economic cycle: a consumption that is reduced by inflation, less liquidity and weakness of the labor market.
However, there will also be a drop in investment. It was the explanation of the executive secretary, José Manuel Salazar-Xirinachs, who -in this sense- assured that the constitutional agreement might generate good news for Chile.
How much concern should there be regarding this negative outcome? It is not necessary to “minimize”, is what Hermann González, macroeconomic coordinator of Clapes UC, says.
Although it is true that part of the setback responds to the earring adjustment of the high levels of liquidity that have not yet cleared up, uncertainty and its impact on investment are risk factors.
Where they have also celebrated the political agreement for a new constituent process is in the business world, precisely due to the fact that would reduce the uncertainty present in the Chilean economy.
This was an obligatory comment in the CPC, where -following three years- subtle john he left the presidency, marking this process as one of the pending issues that -according to him- should generate great consensus.
Who replaces Sutil is Ricardo Mewescurrent president of the CNC, who marked some emphasis in his speech, such as the security and public orderbut also the pending reforms.
Chile will also have lower growth than the average for Latin America and the Caribbean, which will expand by 1.3% in 2023.
