SANTIAGO — Once again, Chilean students have taken to the streets to protest the…
Central Bank of Chile Raises Inflation Projection to 3.5%
SANTIAGO – The president of the Central Bank of Chile, Rodrigo Vergara, has announced that the projected inflation rate for 2012 will be 3.5%. This is a rise from the last inflation projection announced in December of 2011. The projected GDP growth rate has also been increased from the December estimate and the Central Bank [...]
President Piñera Calls for Increased Trade Between Chile and Vietnam
HANOI, VIETNAM - President Sebastián Piñera called for an increase in commercial relations between both countries this Friday in Vietnam to make use of Chile’s potential as the gateway to the South Pacific. Both leaders are very satisfied with the signing of the new Free Trade Agreement (FTA), that helps to reach a higher level of bilateral trade. This [...]
My 2 Cents: Capital May Come To Chile
News from Europe is dismal…for European investors at least. The bailout for Greece will mean the investors in Greek bonds will have to settle for less than face value of their bonds. Needless to say, investors are outraged. The discounts could be very steep, which means big losses, regardless of the interest rates on those [...]
Trade between Chile and Europe dropped 7% in January
SANTIAGO – A decline of approximately 7% was reported in the trade between Chile and Europe last January, which amounts to about US$ 1,902 million, according to yesterday’s report from the National Customs Service. This decrease is largely due to a US$ 45 million drop in trade with Germany and Belgium. Chile decreased its trade [...]
My 2 Cents: Capital is skittish
Regulators in the USA are taking the unusual step of taxing municipal bonds held by the rich. Currently, interest paid by municipalities is tax-free to the recipient. Now in the Obama “jobs” bill, that is about to change. On top of that, it appears that rating agencies are changing their methodologies and will be doing [...]
Tourism, citrus fruit and construction industries excelled in Chile in 2011
Chile’s economy grew by about 6.2 percent in 2011, a very solid growth rate considering the European financial crisis and economic instability affecting much of the world. While 6.2 percent was the average, certain industries in Chile outperformed the overall economy and grew by almost 10 percent, bringing more attention from the investment community within [...]
Corfo to finance mining exploration projects for Chile with Fénix Fund
SANTIAGO- CORFO (Corporación de Fomento de la Producción), the organization responsible for economic development in Chile has announced details of the new Fénix Fund, which will contribute US$150 million dollars to Chilean companies for mining exploration, with a focus on small to medium enterprises. Mining Minister Hernán de Solminihac and Minister of Economy Pablo Longueira [...]
Economists warn South America is too dependent on resources
South America depends too much on exporting their resources and are at a higher risk if there is a global slowdown. Forecasts for raw materials are said to be in decline and Bloomberg suggests two reasons to be worried, “The failure to boost productivity, and tackle longstanding gaps in education and infrastructure, make the region more [...]
Central Bank of Chile makes surprise rate cut
SANTIAGO- The Central Bank of Chile has surprised market analysts by dropping official interest rates from 5.25% to 5%. In a statement released after close of trading on Thursday, the board of the Central Bank reiterated its commitment to a flexible monetary policy. After 6 months without changing the rate, many expected new bank President Rodrigo [...]
Experiencia Endeavor connecting entrepreneurs of South Chile
PUERTO VARAS – EXPERIENCIA ENDEAVOR was the name of the conference organized by non-profit organization called Endeavor Chile. The conference was a meeting point for small entrepreneurs and major business leaders in Chile. Due to the ashes in the air, coming from Puyehue volcano, that erupted in early June this year, some flights to Puerto Varas [...]