Chile's 2016 GDP growth of 1.6% lowest since 2009

By Nono Barahona. March 21, 2017

SANTIAGO, Chile. Citing figures released yesterday in a report by Chile's Central Bank, newspapers and TV news shows focused today on the fact that Chile's 2016 GDP growth of 1.6% was the lowest in the last 6 years since 2009 and they also pointed out that 2016 marked the third year in a row with falling investment.

The story took center stage today on the cover of one of Chile's leading newspapers.

The Chilean Central Bank report stated that the Chilean GDP grew 1.6% in 2016 and that investment fell 0.8% in the same year.

The media was quick to point out that the Chilean economy hadn't seen 3 years in a row of negative investment since 1971-1973.

For many Chileans, the 1971-1973 period conjures up images of economic chaos.

Experts quoted in the media said that the declining GDP growth was caused mainly by the negative investment figures and suggested that the negative investment figures combined with the low GDP growth figures point to a downturn in the Chilean economy over the last 3 years.

Economists were quoted as saying that the reasons for the negative investment figures lie with some policies of the current Chilean administration and with the low copper prices in the international markets.

Asked about the GDP and investment figures, Rodrigo Valdés, the current administration's economy minister, stressed that Chile has a "healthy" economy that is able to grow more. For him, what is important is that the Chilean economy has no macroeconomic tensions that could prevent economic growth and that the government has been able to keep low unemployment figures.