Chile Quake Cost Estimate: Up to USD30B

    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.

    About the author

    • Eliza Villarino

      Eliza Villarino is an associate editor for Devex and leads the company's news team in Manila. She played a critical role in conceptualizing the Development Newswire. Prior to joining Devex in 2004, she has already published articles and news briefs for Internet media organizations and for the Institute for Ethics and Economic Policy at Fordham University in New York. She earned her bachelor's in political science and master's in public affairs from the University of the Philippines. Eliza is a member of Mensa Philippines.

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