By nkulande on Oct 15, 2008 in Uncategorized
Inflation is the principal economic issue that Chile has to face up to at this moment and the development of the worldwide financial crisis has increased Chilean and international uncertainty towards the future.
At this time, Chile has a bigger capacity to endure the hardships of the worldwide economy than in the past, so instead of going into a recession it is going to have a low growth until 2010, according to the national economists.
All industrial areas in Chile are being affected, from the agro industry to the mining industry. Millionaire projects have stopped until further warning or even canceled because of the present worldwide economy.
One of the areas that has been the most affected in terms of projects, is the real estate sector because it is at a standstill and is going down thanks to the inflation, the restriction of the mortgage loans and the present rising interest rates on loans. The expectations of the people, mainly at the middle class have decreased. That’s why this year buildings are not going to be done until there are people interested in buying them, so the companies can give priority to these constructions.
For years, we looked for financing through banking institutions outside the country but the most important businessmen say that today, due to the crisis, is necessary to look for the financing in Chile because we have internal support for this. We can say then, that in spite of the awful economic worldwide prospect for the next years, Chile is one of the countries that is most prepared to bear this crisis.