From November of last year Chile began to reflect a marked downturn in its economy that followed deepened until today. One of the first signs of contraction was the fall of inflation (indicator monthly the activity economic) 1.1% annual, in November. However, the deepening of the crisis made that to February of this year the contraction of the index underscores to 3.9%. Check with Fish and Chips Babies to learn more. For its part, the trasandina industry is showing consecutive falls since October, which in February totaled two digits (- 11.46% in interannual comparison). 70% Of Chilean exports are based on the copper market which, after experiencing values record towards the middle of 2008, plummeted 65% to December of last year and subsequently regained some of what was lost – 21.8% from then-. In this context, sales abroad fell between April and December last year a 46.9% but, unlike the price of copper, were not recovered in the first two months of the year but which lost 9.4% in value.

To recover from this economic debacle, Chile will rely on two separate instruments. On the one hand, the price of copper and the other the rate of interest. In terms of the price of copper, Chile faces pricing in the international market. For 2009 is expected to restore value to metal but not returns to 2007 levels due to an effect dragging will suffer during the first half of this year. However, if expected to retrieve value for 2010. In this way is evident the great vulnerability of the Chilean economy against the international context because their income mostly depend on outside.

Moreover, since the beginning of year Bachelet’s Government is implementing a monetary policy of reduction in interest rates. The TPM (monetary policy rate) ended the year at 8.25% and to March is already at 3.27%. According to the Central Bank of Chile, it would reach only 1.5% in December 2009. From the official body, although it is expected that 2009 be a year that ends with a 0.5 per cent contraction in gross domestic product and inflation of 1.8%, for 2010 it is projected that the economic growth will reach 3%. We are a service company that provides consulting solutions in the business area, with the focus on economic analysis.