OECD improves the growth prospects of Chile for this year to 1.7% – The Nation (Chile)

Monday November 28, 2016 | by EFE Posted by: Ricardo Pérez, V. – Photo: AFP + Follow The Nation Facebook and Twitter

The chilean economy will grow this year by 1.7%, according to the perspectives of the OECD published Monday, two tenths more than the organization had predicted in its previous report, published in June.

The Organization for Economic Cooperation and Development (OECD) maintained its forecast for 2017, is a GDP growth of 2.5%, while we gave for the first time forecast to 2018, which stood in the 2,6%.

In its new semi-annual report of prospects, the organization that brings together the most developed economies of the planet pointed out that from next year, will the brakes that have held the chilean economy this year, as the fall in the prices of raw materials and external demand.

The chilean companies will export more because they have gained in competitiveness well because it has been noticed an improvement in the buyers country, said the OECD.

The improvement in sales will spur investment and domestic consumption, which will stimulate the economy and will decrease the rate of pay, for this year is expected to finish at 6.5%, to pass to the 6,4% 2017 and 6.2% in the following year.

That means a change of trend with respect to their forecasts in June, when auguraban a unemployment of 6.8% in 2016 and 6.9% in 2017.

terms and CONDITIONS

The organisation noted, however, that that growth is conditioned by two factors: keep the evolution of prices of raw materials and the economies of the trading partners of Chile to recover according to forecasts.

In particular, the OECD indicated that the economy of china and of the Latin american neighbors, or financial conditions global volatile may impact the external demand.

in Addition, the growth could also be weakened if it persists the current uncertainty weighing on the business sector or if it is still slow evolution of the trade.

At the other end, if you retrieve the copper prices that have contributed to slow down the growth this year, in the next two years would produce an economic stimulus that would improve the trust and the investment, which would allow the Government to reduce its budget deficit.

The OECD noted that “the new measures aimed at increasing the competitiveness and productivity could improve the business climate of most of what was supposed to”.

The inflation, turn, still linked to the evolution of the exchange rates of foreign currencies and oil prices.

While the monetary policy, with a interest rate of 3.5%, continues to support consumption, “the recent measures to improve the competitiveness and strengthen the investment can help to diversify the economy and support a more sustainable growth”, said.

But the organization also warned that “much remains to be done to reduce inequalities”.

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