In the latest edition of specialist commerce magazine, Global Trade Review, Commerzbank’s Robert von Oldershausen, senior relationship manager for FI Latin America, offers his insights on the Chilean economy. The article, ‘Chile’s Balancing Act‘, notes that the export-dependent country is struggling in the face of low commodity prices and weak demand in global markets – particularly for its top resource, copper.
The article explains that the Chilean economy, however, does remain stable, and is set to grow by around 1.5% this year. And as von Oldershausen suggests, “This is not that bad in European terms”. But he points out that “in Chilean terms, 1.5% growth is low.”
According to von Oldershausen, Chile’s economic growth relies on continuing the diversification of its export base. In order to support this, banks will be key when facilitating investment in new industries. Encouragingly, Chile’s banking sector is healthy, with ample liquidity based on provisions made in the past year. Von Oldershausen comments: “In 2016, most banks in Chile have made good profits despite the economic slowdown. This a welcome sign for Commerzbank and our correspondent banks in Chile that support corporate clients”.
Read the article online here (note: a subscription is required).