Chilean Peso's weak performance to blame copper and China

Lower copper prices continue taking a toll on the Chilean economy with this effect being magnified in the past days as the price of this metal has declined around 7% in just a matter of days. 

Keep in mind that copper is Chile's main export product that when added to the fact that China is Chile's main trade partner then this problem has gained importance in the past days.

While Chile has a prudent handling of public finances and has a solid banking system that should keep credit flowing to the private sector, the mining nature of the Chilean economy is struggling to find a recipe to justify new investments in this sector. 

The decline in gross fixed investment because of this is now evident in growth prospects for 2015 that according to the estimates should be around 2.4% by year-end, says Commerzbank.