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The Chilean peso has appreciated by 12.5% so far this year against the dollar. However, the trade balance showed a positive result in the first three months of the year with a value of $ 6. 100 million. It is true that at the moment Chile is maintaining its external surplus, but the appreciation of its currency no longer a threat and this is well reflected in the fact that in this first quarter, while exports had an increase of 15.1% Imports were up 38.6%. Growth that reached the Chilean economy grew 5.6% during the month of February, slightly above market forecasts, which place it at 5.5%, is also another good news that they met in the past days.

And especially considering that the input is not a result that motivates action by the Central Bank to the rise in its benchmark rate. With the economic growth data released, the decision to take the Central Bank of Chile in the meeting next Thursday, according to market expectations, will be to keep its benchmark rate steady at 6.25%. This would eliminate pressures on the exchange rate. "Exceptional" Our investment newsletter investment Outstanding Investments, has made a profit of up to 700% with companies like Suncor Energy (NYSE: SU) of the hand of the rise of oil in this newsletter you will find companies that have benefited from this rise in commodities. And these hikes will not stop: If you want to know our investment portfolio and our final recommendations, click here Another good news for Chile occurred two weeks ago, when the Chilean Senate unanimously approved the FTA with Colombia and this FTA the most comprehensive agreement between two Latin American countries and the only one that includes a chapter on government procurement in the region. It also includes an investment chapter that seeks to promote and protect the flows in both directions, by setting clear rules.

Chilean Finances

Chile also finished these rounds of FTA negotiations with China. During 2007, the first year of the FTA with China, growth in exports to that country by 140% made it to become the first destination of Chilean exports. Clearly these two FTAs will increase the growth potential outside door of the Chilean economy. With all this good news from Chile I might be tempted to say that the outlook for the coming months will be positive. But the reality is not. The problems remain and are latent. As autumn progresses and temperatures continue to fall, tensions over energy capacity will grow.

So far is overcoming this obstacle, but there are doubts about whether it can save it for much longer. With a nominal appreciation of the exchange rate of 18% since early 2007, the competitiveness of Chilean companies has clearly deteriorated. This probably will decrease the trade balance surplus unless the measures implemented by the Bachelet government decides to take effect or new measures to tackle the problem. While the fact of increase in consumer prices, which turned out to be 0.8% in March was lower than expected, which increase the chances that inflation will return to levels around 4% by the end of the year, the annual variation in consumer prices are still held high (at 8.5% to March). High fuel prices and heavy dependence on imports from Chile them (imports about 90% of its oil needs), combined with the problems of drought, are factors that are affecting the current level of inflation and are beyond the control of the authorities.

Despite the good signs that threw economic data in recent days, the problems to be solved Bachelet’s government to maintain the good performance of the economy are many and complex. Will be seen how the government’s response to these challenges.

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