GDP decelerated in Chile in 2Q14 and the current account showed its first surplus since 2012

The slowdown was driven by a sharp fall in investment and a deceleration in both public and private consumption. In our view, economic activity has not stabilised yet, and we think further monetary stimulus will be needed this year. The current account reached a 0.1% surplus of 2Q14 GDP but we expect the annual figure for 2014 to be a slight deficit.

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