Chile: The government will announce measures to make exports more competitive.

11 January 2013
Florencia Vazquez,Gustavo Arruda,Marcelo Carvalho,Nader Nazmi - Market Economics
Daily Latam Spotlight | 11 Jan 2013 06:00 |

Chile: The government will announce measures to make exports more competitive.

CHILE

Government will announce measures to make exports more competitive. Finance Minister Felipe Larrain affirmed that next week the government will unveil competitive measures. According to Larrain, the upcoming measures are not necessarily on the exchange rate.

The monthly survey of economists showed few changes, as expected. Both the 1y and 1y/1y inflation estimates were unchanged at 3%, according to this month’s survey. The same is true for the year-end 2013 and 2014 forecasts. For the current month, expectations are for a 0.1% monthly increase.

Regarding the policy rate, consensus changed the outlook: Economists now see a 25bp rate hike until year-end 2013. In fact, consensus sees only this one 25bp hike until year-end 2014.

Separately, growth expectations remained unchanged at 4.8% for 2013, while expectations for 2014 improved modestly to 5.0% from 4.9% a month prior.