Chile posted its first trade deficit in six years in September, the latest in a barrage of recent data portraying a weakening economy, weighed by sinking copper exports and high oil prices. September's $319 million trade deficit marked a sharp reversal from a $780 million surplus in August and was well below market forecasts for a $400 million surplus.
Chile's peso fell on the data, extending sharp losses in recent sessions, and was down 1.05 percent in early trade at 591.70/592.30 per dollar - around three-year lows - before erasing losses. The September data compares to a $1.37 billion trade surplus during the same month in 2007, and comes as prices for copper, which accounts for over half of Chile's exports, have fallen steeply from record highs just a few months ago.
By contrast, at the height of Chile's copper boom in early 2006, the monthly trade surplus touched highs of as much as $3 billion. Total Chilean exports in September fell to $5.047 billion from $6.270 billion the previous month, while imports fell to $5.366 billion from $5.490 billion.