will resolve the tensions between the dynamics of the real sector, inflation and exchange rate conditions in the us economy. in japan, the uk and europe, the markets expect policies to remain as expansionary, or be even more so, considering their weak economic growth rates and projected inflation exceeding their central banks ’ targets. 2 / 14 bis central bankers'speeches in this context, the fraction of fixed - income assets — including long term — with negative rates has increased considerably around the world. i draw your attention to this fact, because it was unimaginable some years back. thus, higher risk appetite and the search for yield have pushed the prices of risky assets up, squeezing sovereign spreads and appreciating currencies vis - a - vis the dollar ( figure 7 ). in any case, the intensity with which this change in financial conditions will impact activity or commodity prices is not so clear. in the baseline scenario, global activity projections do not change significantly. for the 2016 – 2017 biennium average growth in the world economy is expected to stand at 3. 2 %, while chile ’ s trading partners should grow by 3. 0 %, also fairly unchanged from june. the terms of trade will deteriorate less over the projection horizon, although the trajectories foreseen for the prices of copper and oil are similar to those of june, expecting prices in 2018 of us $ 2. 3 per pound of copper and around us $ 55 per barrel of oil ( table 1 ). locally, second - quarter data for domestic activity and demand confirmed bounded economic growth. gdp posted lower annual growth than in the first quarter, but with a configuration where natural - resource - related sectors — particularly mining — showed less favorable performance while other gdp changed little, if anything. the total consumption component of demand continued to grow at around 2. 5 % in annual terms, while investment posted positive growth, boosted by specific factors associated with imports of machinery and equipment. on the other hand, during the second quarter investment in construction and other works showed a sharper than expected fall, with a still weak real estate sector ( figure 8 ). in this context, this report ’ s baseline scenario assumes that gdp will rise between 1. 5 % and 2. 0 % this year, considering that the information reviewed for the first half of the year brings no surprise with respect to our june projections. for 2017, a range is projected for gdp between 1. 75 % and 2. 75 %, down

us only. commodity cycles and international windfalls come and go. in the long run, countries are the masters of their own destinies, and behind those that developed and provided a better standard of living to their people are the good public policies they implemented. ladies and gentlemen : in a few months i will be concluding the five - year term established by the constitutional law for the governors of the central bank of chile. i believe that, although the past few years have been quite complex, the joint efforts of the bank ’ s staff and board members have helped us succeed in our mission. i take this opportunity to thank you for all your support during this period. thank you. 7 / 14 bis central bankers'speeches 8 / 14 bis central bankers'speeches 9 / 14 bis central bankers'speeches 10 / 14 bis central bankers'speeches 11 / 14 bis central bankers'speeches 12 / 14 bis central bankers'speeches 13 / 14 bis central bankers'speeches 14 / 14 bis central bankers'speeches