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Santander Say Domestic Demand Not Showing Signs Of Clear Recovery

CHILE
  • According to Santander, the dynamism that activity has taken in recent months is rather associated with persistent supply factors (operation of new mining projects and recovery of manufacturing production due to availability of inputs), and some transitory factors that would dissipate over time (generation hydroelectric).
  • Domestic demand still does not show signs of a clear recovery, so future growth will be highly conditional on what happens there, particularly given the continuing weakness in the labour market that could slow down the dynamism of consumption.
  • Thus, Santander estimate that GDP would close the year with a zero variation given an expansion between 1.0% and 1.5% y/y in December.

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