iShares MSCI Chile ETF

Investor sentiment with respect to Latin American economies has definitely been changing since the beginning of the year.

As the third-largest economy in Latin America, Colombia is expected to recover from its subdued growth of ~2% in 2016—its lowest figure since 2009.

Chile’s economy is highly dependent on copper mining activities. The recent long strike at BHP Billiton’s Escondida copper mine continues to impact Chile.

Latin American markets were trading higher on July 9—taking cues from other emerging markets. Brazil’s inflation rate was released lower at 8.8% in June.

The Latin American (ILF) (EWW) economy contracted in the second half of 2015. The fourth quarter registered the biggest fall in six years.

World Bank data reveal that since 2011, more than 60 million people in Latin America have opened bank and mobile money accounts.

Changing demographics in Latin America are driving innovations. Young people, which account for 25% of the total population, are more likely to accept innovation.

The Chilean peso depreciated against the US dollar on January 29, 2016, as reports indicated that copper production fell 5.5% in December 2015.

Any variation in copper demand or supply directly affects the value of the Chilean peso against the US dollar.

According to the World Bureau of Metal Statistics, Peru’s refined copper production declined in the first three months of the current year.

On a year-over-year basis, Chilean refined copper production fell by more than 1%. Incessant rains causing flooding are behind the decline in February’s copper production.