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Chilean banks make a negative balance of the national economy

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Santiago de Chile, Dec 27 (Prensa Latina) Chile's economy has remained stagnant for a decade and currently its growth is the lowest in the region, the Association of Banks and Financial Institutions (Abif) stated today.

At the end of the military dictatorship, in 1990, Chile grew twice as much as the rest of the world, but in recent times that trend has reversed, said José Manuel Mena, president of the entity.

The Abif leader recalled that in the recent Monetary Policy Report the Central Bank estimated that at the end of 2023 the Gross Domestic Product will be zero and the projection for next year is 1.25 to 2.25 points, between the most under the area.

Despite everything, Mena highlighted that the country does not have liquidity problems, investors’ savings are in Chile, but poverty and insecurity increased.

He also referred to the difficulties of political management in reaching agreements and short-term solutions. We must invest, generate jobs and guarantee security to aspire to once again be a country with great possibilities, he said.

Regarding the situation in the banking sphere, he explained that there is a negative credit cycle, but savings are relatively stable, particularly long-term savings.

Mortgage loans can no longer be for 30 years as they were until recently, he noted, among other reasons because interest rates have been the same since 2000, but homes today cost three times more in relative terms for an average salary.

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