The Feb. 27 earthquake could cost Chile as much as USD30 billion, Reuters Alertnet quotes Eqecat, a firm advising insurance companies on catastrophe risks. That is equivalent to 15 percent of the country’s gross domestic product.
“There will be a widespread and deep impact on Chile’s economy,” Nick Chamie, who leads research on emerging markets at RBC Capital Markets in Toronto, told Alertnet.
Another analyst believes otherwise.
“The direct economic impact of the earthquake (could) be limited,” according to PIMCO portfolio manager Curtis Mewbourne.
Mewbourne is particularly optimistic about recovery prospects for Chile, which has gathered ample funds from its copper exports. The country is the world’s largest copper producer.
“As the priority shifts from the urgent humanitarian needs to reconstruction, the strong state of government finances in Chile will facilitate these efforts,” Mewbourne said.
