Chilean economic growth expected to resurge in Q2
Chilean economic growth could accelerate to a 6%+ annualized pace in the second quarter of the year, Banco de Chile's investment banking branch BanChile Inversiones said in a report to its clients. The recovery will be a consequence of rebuilding plans expected from the government after the 8.8 grade earthquake that affected central-south Chile, where most of the country's industrial capacity is located. The bank also expects a recovery in employment in the medium term, especially in the construction sector. In the short term the Chilean economy will face some inflation pressure as a result of supply disruptions, but it will ease in the medium term, the report says. As a result of the economic emergency, the Central Bank is expected to maintain the benchmark interest rate at current levels at least until June or July.
