Chilean households are making positive strides in their financial health by reducing debt levels while increasing incomes. According to the National Accounts Report for the second quarter, household debt as a percentage of GDP decreased to 48.4% by the end of June.
The report, compiled by the Central Bank, shows a 5.6% annual growth in households’ gross disposable income, driven by property and production income. This increase, coupled with a 5.7% rise in effective final consumption, has maintained the sector’s savings rate at 5% of GDP.
Additionally, households demonstrated a financing capacity of 3% of GDP in the second quarter, signaling their ability to manage finances effectively. Asset acquisition in money market and non-money market fund shares contributed to Chileans’ financial landscape.
Despite a decrease in net financial wealth compared to the previous quarter, the overall financial outlook for Chilean households remains positive. With decreasing debt, increasing savings, and strategic investments, Chileans are on track towards greater economic stability and growth in the future.
Chile’s Financial Landscape
The Central Bank’s report also highlights the General Government’s improved financial situation, with government debt decreasing to 37.9% of GDP. This progress indicates a promising financial future for Chilean households.