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Capital Economics Upgrade Growth Forecasts

CHILE

Following the data this morning, Capital Economics have raised their Chile '21 GDP est. to 9% from 6.5%.

  • Despite the rise in Covid-19 cases and the tightening of quarantines, the strong 4Q and early 1Q data will give a strong carryover to growth over the rest of 2021
  • Chile's vaccine rollout will allow most restrictions to be lifted and the recovery to gather pace later this year, outperforming the region.
  • Growth will also be supported by accommodative fiscal and monetary policies, as well as favourable terms of trade
  • 2022 growth forecast revised to 4% from 5.5% (bbg)

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