Chile’s imports likely to have grown in May

Chile’s imports are expected to have grown for the first time in 17 months in May, whereas exports are likely to have fallen at the slowest pace in 16 months. According to a Societe Generale’s research report, imports are expected to have increased 1.9% y/y, whereas exports are likely to have dropped 3.9%.

“We expect the trade balance in May (SG: $417m) to be lower than that of May 2015 ($689m)”, added Societe Generale.

Last year, the country’s trade surplus had declined to nearly half of 2014’s level due to a sharp fall in exports. However, the pace of decline in exports has slowed down in 2016. Subdued external and domestic demand is expected to impact trade activities in 2016, thereby adversely impacting the prospect of a significant economic rebound, according to Societe Generale.