We continue to expect that 2013 will see a pronounced shift in the Chilean economy, and we forecast real GDP growth to fall from 5.6% in 2012 to just 4.3% this year and average 4.2% from 2014-2017 – below consensus estimates. This slowdown in growth is attributable to decelerating economic activity in China, which over the next several years will result in weakening real demand for Chilean copper exports and reduced investment into the country’s mining sector. This should have a negative knock-on effect on volumes at the country’s ports. Further downside risk is presented a series of strikes that …
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