The business climate in Chile continues to deteriorate amid the expected economic slowdown, although it should not generate significant disruptions to the development of activities, a Central Bank report showed on Friday.
In its February Business Perception Report (IPN), the agency said that the companies declared that they had not carried out “significant modifications” in their staffing but they have a slight decrease in the number of workers.
“Regarding the current performance of the companies, they indicate that it continues to deteriorate, in a scenario in which the pressure of costs tends to fall, although it has not completely subsided yet.”, he stressed.
They also expect this deterioration to continue deepening over the next twelve months.
“Persistent high costs and limited room for further price adjustments have resulted in a further squeeze on profit margins”, he added.
Although the rise in interest rates has put pressure on financial conditions, credit requests have risen slightly in relation to the previous semester and are mostly associated with the purchase of inputs and debt payment to suppliers.
Around half of the companies consulted said that they operate with endowments below the pre-pandemic level and close to half of that group “believes that this staffing level is appropriate for the operation of your company”.
Source: Reuters
Source: Gestion
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