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What do lower copper prices mean for Chile?

The recent falls in global copper prices add further weight to our belief that GDP growth in Chile will be slower than most expect this year. Even so, this is unlikely to be a disaster for the economy. Indeed, to the extent that a moderate fall in metals prices dampens the risk of overheating and causes the peso to depreciate, this could lead to a much-needed rebalancing in the drivers of economic growth.

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