Businesses in Chile Suffers $1.4 Billion Loss Due to Protests
Chile's finance minister Ignacio Briones warned on Tuesday that the country's economy is at risk due to continuous protests that affect hundreds of businesses. Recently, the peso slid into a historical low of 4 percent against the dollar. Briones expresses alarm towards the country's worsening economic situation.
In a previous report, the nationwide protest in Chile occurred because its people are asking for more improved public and medicare services. It was also stated in the report that worth $400 million dollars were destroyed in the metro transport and the Chilean businesses lost $1.4 billion. Moreover, this led the President to cancel the two big summits in their country.
In a report from Reuters, Ignacio Briones said that the weakening of peso is a sign to worry because that is what he and his group are monitoring since the start of the protest. With the economic problem they are facing right now, he is calling the Chileans to help restore the normality of businesses that would help the people to function properly and let people to go back to their work after weeks of marches, protests and strikes that damaged hundreds of properties and public transport that is estimated to be about $3 billion.
Santiago told the reporters that all actions Chileans do have consequences and they are having these grave consequences now and are significantly seen in the economic status of the country, its entrepreneurs and the most vulnerable sectors. Meanwhile, President Pinera appealed to its people to sign to the three accords and these are to restore security, to promote a more equal society and develop a new constitution that would replace the 1973-1990 Augusto Pinochet dictatorship.
The country's currency down more than 10 percent since mid-October and on Tuesday some members of the of the state workers and unionized miners in Chile announced that they are not satisfied with the government's plan to ratify the constitution. The weeks of nationwide protests in chile led to the destruction of businesses, arson, riots, looting, death of 23 people and 2,000 people were hospitalized. In addition, there were more than 1,000 complaints filed about human rights abuses according the human rights groups and the prosecutors' office.
In a report from Financial Times, the tallest building in Latin America found in Santiago were hurled by the protesters with obscenities. The tower was covered with graffiti and its entrance were shut after it became the target of the protesters. One of the owners of the restaurants in Santiago said that she needed to close early because of the chaotic scenario and to protect her modest restaurant from looting. The arson and looting caused businesses to lost hundreds of millions.
The economist even said that Chile may enter into a technical recession early next year if the nationwide protests continue. The weeks of protests also affected the upmarket part of Santiago which is popularly called as the Sanhattan. Moreover, if the nationwide protest will continue, it will definitely affect the country's economy and will force hundreds of business owners to close and declare bankruptcy.
Read more: Chilean businesses count cost of riots, Chile's finance minister calls for return to 'normality' as peso slides and Nationwide Protests Urged Chile President to Cancel APEC and Global Climate Summit
Subscribe to Latin Post!
Sign up for our free newsletter for the Latest coverage!