Despite Boom, Tight Money Keeps Prices Stable 1995 was a banner year for the Chilean economy, but this success may cause problems in 1996. Other indicators suggest that this strong growth has accelerated as the year has progressed. So far, the relative steadiness of the Chilean peso has had only a limited impact on the trade balance. The swiftness of Chile's growth casts something of a cloud over this halcyon scene, but we do not anticipate real problems in 1996. With consumption spending outstripping overall growth, the threat of inflationary pressures begins to increase.
Exports are also likely to suffer, as the international price of copper falls.
But, for the sake of economic stability in Chile, less growth is more. This memorandum is based on information generally available to the public from sources believed to be reliable. No representation is made that it is accurate or complete. Certain assumptions may have been made in this analysis which have resulted in any returns detailed herein. No representation is made that any returns indicated will be achieved.