Chile: Competitiveness of manufacturing exports

Summary

In general terms, for the last five years the Chilean industry has strayed from the upward path of competitiveness gains that it had been treading since 2002. This decline has resulted mainly from the appreciation of the Chilean peso – in an environment of multilateral dollar depreciation – and rising labour and energy costs. However, we see this as having been partially offset by lower borrowing costs – in particular foreign – and by an expansion of the currency-hedging market.

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