Macroeconomic Forecast Chile

August 2008 | Macroeconomic Forecasts

Chile's central government budget surplus during the second quarter of 2008 narrowed to 1.0% of GDP, from 3.0% in Q108. While government expenditure rose by just 5.5% quarter-on-quarter (q-o-q) in Q208, revenues fell by 18.4% q-o-q during that period. This saw Chile's fiscal surplus drop by 43.6% q-o-q and 24.3% compared to the same quarter in 2007. We believe poorer output and sales numbers from Chile's industry and service sector are weighing on government tax proceeds this year. We revised down our fiscal surplus forecast for this year to 3.0% of GDP, from previous projections for a 4.1% surplus.

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