After experiencing its worst economic slump since the Asian crisis of the 1990s, Chile and its ETF (ECH) are showing signs of renewed vigor.
For the first time in 2009, Chile posted economic growth, signaling an end to the stunted economic growth. The country’s economic activity index, the Imacec, is expected to have gained 0.5% in October from the same month last year, according to the median estimate in a Dow Jones Newswires survey of 12 economists, reports Anthony Esposito for The Wall Street Journal.
More reasons to feel hot on Chile these days include:
- In the third quarter, the economy started to pull out of its recession as an uptick in external demand and a rebound in metals prices dovetailed with monetary and fiscal stimulus at home.
- Although GDP contracted 1.6% on the year from July through September, on a seasonally adjusted basis it grew 1.1% from the previous quarter.
- Rodrigo Martinez for Reuters explains that Chile’s central bank said on Tuesday it held its benchmark interest rate steady at 0.50% for a fifth month. The bank reiterated that it would hold the rate steady at the “minimum” level until at least the second quarter of 2010.
- The OECD invited Chile to be the second Latin American member after Mexico. Chile will be the 31st member country. The other four countries invited to begin discussions were Estonia, Israel, the Russian Federation and Slovenia.
The OECD has also broadened its reach to major emerging economies, including Brazil, China, India, Indonesia and South Africa, reports Emma Saunders for The Financial Times. Acceptance from Secretary-General Angel Gurría and President Michelle Bachelet on 11 January 2010 in Santiago will make it official.
For more stories about Chile, visit our Chile category.
- iShares MSCI Chile Index (NYSEArca: ECH): up 83.9% year-to-date