ELECTIONS IN CHILE: TRIMPH OF GABRIEL BORIC COLLMA CHILEANS BAG AND WEIGHT |International |Briefcase

Los activos chilenos registraron este lunes un importante retroceso como respuesta del mercado a la victoria holgada del izquierdista Gabriel Boric en las elecciones presidenciales del país austral que se celebraron el domingo.

Así, el peso registró el mayor retroceso interdiario en una década y cerro a un mínimo histórico frente al dólar, alcanzado los 876 pesos por moneda estadounidense, es decir, un alza de 4%, el mayor incremento desde la crisis financiera del 2008.

On the other hand, the main stock market index, the IPSA, fell 7.45% in the early hours of the morning, by daily registration from the election of the members of the Constituent Assembly.Finally, the indicator fell 6.2%.

(See: Chile has already chosen: the country closed the most close elections in years).

The yields of the country bonds called in dollars expiring in 2050 increased 8 base points to 3.3%.

Sociedad Química y Minera de Chile SA, el segundo mayor productor de litio del mundo, lideró las pérdidas en el IPSA, cayendo hasta un 16%, la mayor cantidad desde el inicio de la pandemia.

Investors are concerned that Boric policies damage one of the richest economies in Latin America by imposing greater taxes, raising social spending and increasing government regulation on companies.

Elecciones en Chile: triunfo de Gabriel Boric desploma bolsa y peso chilenos | Internacional | Portafolio

"The market in general gave the triumph of Boric for discounted, but nobody expected the difference with Kast to be so wide," economist Juan Ortíz, of the Observatory of the Economic Context of the Diego Portales University.

In Sunday's elections, the former student leader rose with 55.87% of the votes, compared to 44.13% of his right -wing political opponent José Manuel Kast.

Additionally, adds the professor, the historical participation of voters (55%) allow him to have "a totally positioned mandate."

"Boric will have to heal a nation," Patricio Navia, from the University of New York, told AFP.“But the process of writing a new constitution is still underway and there will be a plebiscite on the new Constitution in less than a year.So I don't think there is much time to heal.2022 will be a hard year, ”he added.

(Read: Gabriel Boric wins Chilean presidency with more than 55 % of the votes).

What to expect from Puerto Ric?

La gran duda del mercado es cuál Boric va a ser el que va a gobernar: el de posiciones más extremas que se mostró en la primera vuelta o el más moderado que apareció de cara al balotaje.

Exchange houses in Chile evidencing the rise in the dollar after the triumph of Puerto Ric.

AFP

"That is the great unknown and as long as that is not transparent, uncertainty will follow," said Ortíz.

Boric, 35, promised in his campaign to boost a “welfare state”, in one of the countries with the greatest social inequality, a gap at the origin of “social outbreak” that shook the country from October 18, 2019.

(See: Reform the economy, the promise of the new president of Chile).

El mayor obstáculo para avanzar con rapidez en las reformas que Boric prometió -como el fin de las privadas Administradoras de Fondos de Pensiones, un sistema universal de salud y 500.000 nuevos empleos para mujeres, entre otras-, es la composición del Congreso que asumirá con él, dividido en partes iguales entre partidos de izquierda y de derecha.

"Governing will be very, very difficult," Michael Shifter told AFP of the Inter -American Dialogue Analysis Center in Washington.

The Central Bank predicts that in 2022 economic growth will slow down and will fall from about 12% recorded this year to only 1.5%, as the pandemic stimulus is removed.

El próximo Gobierno debe abordar un déficit fiscal que ha aumentado a casi el 12% del producto interno bruto. Los costos de financiamiento serán altos, ya que la inflación promediará el 5,9% en 2022.

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