The good news continues for the chilean economysince the EMBI, one of the indicators that measures Chile’s country risk and is calculated by JP Morgan and published by the Central Bank, revealed that the country It reached its lowest level since February 2018.
The EMBI shows the difference in interest rates paid by dollar-denominated bonds, issued by underdeveloped countries, and US Treasury papers, which are considered risk-free.
In that context, In the first 19 days of April he averaged 119 points, his lowest level since February 2018 when he scored 116.95.
If compared with the region, Chile has the lowest country risk in April. The closest country is Peru, which registered 150 points. Brazil follows with 199 points; Colombia with 282 points and Mexico with 309 points
At a global level, Latin America reached 330 points in the first 12 days of April. Asia had 130 points; Europe 338 points and globally the country risk is 278 points.
According to experts, the decrease in country risk is due to the price of copper, better projections for both internal and external activity, and the country’s fiscal situation, which has remained within the trajectory planned by the government.
The numbers
Let us remember that January growth in Chile was 2.3% and February growth was 4.5%. These surprised the market, as they expected lower records. Due to this, the Central Bank raised its growth range in its first Monetary Policy Report (Ipom) published at the beginning of April: in that report it went from expecting a Gross Domestic Product (GDP) from 1.25% – 2.25 % to one between 2% and 3%, while the Economic Expectations Survey (EEE) raised it from 1.8% to 2.5%.
Meanwhile, the price of copper has also improved, since between January and April 23, the average price reached US$3.9 per pound and since April it has been trading above US$4 per pound and on this day Tuesday closed at US$4.35 per pound, its highest value since April 29, 2022.
