El Ciudadano
Original article: Chile al borde de la recesión: Exministro Marcel apunta a responsabilidad Kast-Quiroz por «shock» en precios de los combustibles
In a recent interview with Radio 13C, former Finance Minister and ex-president of the Central Bank, Mario Marcel, highlighted the responsibility of current government officials in addressing Chile’s challenging economic situation, as the latest Imacec figure (a decline of 0.9%) places the country on the edge of a technical recession.
It’s important to note that Imacec (Monthly Economic Activity Index) is an indicator created by the Central Bank, estimating the activity across various sectors of the economy within a month, covering around 90% of the nation’s goods and services. A technical recession is defined by two consecutive quarters (six months) of economic contraction, and Chile has already experienced five consecutive months of decline.
Regarding this, Marcel said on Radio 13C, «the deterioration of economic expectations occurred due to the shock of fuel prices (…) If you look at any survey from the past few months, you’ll see that in March and early April there was a drop that set expectations back at least two years,» he warned.
Marcel explained that «this impacts people’s consumption decisions. Consumption is, in a way, the largest component of internal demand. You can see it in the performance of retail and services.»
«I believe that when the decision was made to activate or not activate the Mepco, I’m not sure the impact was fully calibrated on people’s expectations and consumer behavior,» emphasized the former Finance Minister.
Listen to the full interview HERE
Continue reading on this topic:
We will continue to provide updates.
La entrada Chile on the Brink of Recession: Former Minister Marcel Blames Kast-Quiroz for Fuel Price «Shock» se publicó primero en El Ciudadano.
🔥 Ver noticia completa en ElCiudadano.cl 🔥
