CHILE
Business Insight Report – Stabilizing Business Performance:
The Central Bank has published the Business Perceptions Report (IPN), a survey that explores the perceptions and expectations of companies on various aspects of their performance and inflation projections. This study, which is conducted quarterly, gathers opinions of heads of companies of various sectors and sizes throughout the country, obtained through interviews and an online survey (EPN).
The information presented corresponds to the months of April and May of this year. The full report, along with graphs and methodological details, is available on the website of the Central Bank of Chile. It is important to note that the opinions expressed in this report may differ from the assessment of the economic situation made by the Board of the Central Bank.
Main Results
Companies report a stabilization in their performance. After several quarters of continuous deterioration, they indicate that their results were similar to those of the previous quarter. This is attributed to a more stable behavior in sales, costs and prices, although the perception of tight margins persists.
In terms of investments, just over a third of companies declare they have projects planned for 2024, a slightly lower prevalence than the previous year. These investments would mainly focus on the renewal and maintenance of existing infrastructure, as well as the automation of processes.
Despite a slight decrease in some short-term interest rates, companies perceive restrictive financial conditions. Lending activity remains low due to both supply and demand factors, including strict financial control for access to credit and the reluctance of companies and individuals to take on new debt.
In terms of future expectations, companies expect an improvement in their performance over the next 12 months, with a trend towards more typical results for next year. However, concerns remain over the level of sales throughout the year, followed by labor costs and financing conditions.
