PA - Banco Security

ECONOMIC CONTEXT
EXTERNAL ENVIRONMENT: FROM SCEPTICISM TO OPTIMISM
The implementation in 2009 of unprecedented measures by the monetary and fiscal authorities,
oriented to resolving the problems generated by the global financial crisis, improved economic
prospects toward the end of that year. However, doubts early in 2010 about the fiscal solvency
of certain countries (especially Dubai, Greece and Ireland) generated further uncertainty about
the evolution of global recovery.
However, the fiscal adjustment packages and international assistance contributed to limiting the
impact of the problems in Europe on the rest of the world and led to viewing reactivation more
optimistically. At the same time, the United States and the emerging economies continued to
show strong growth in a context characterized by rises in commodity prices and stock markets,
and a further weakening of the dollar against a basket of currencies.
The external scenario faced by Chile in 2010 therefore evolved from scepticism to optimism with
respect to global reactivation, with a marked decoupling in economic performance between the
developed and emerging nations.
GDP GROWTH: DEVELOPED AND EMERGING ECONOMIES
(%)
EMERGING
10
DEVELOPED
8
6
4
2
0
-2
-4
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2010
SOURCE: ESTUDIOS SECURITY
CHILE: REACTIVATION CONSOLIDATED
At the local level and according to preliminary figures, GDP grew by 5.2% in 2010, consolidating
the recovery following the global crisis and overcoming the impact of the earthquake that
affected the center-south of the country on February 27.
Domestic demand showed strong growth, although moderating toward the end of the year, of
around 15% in 2010. The disaggregation of this variable shows strong growth in private spending