President-elect Sebastian Piñera, who is set to take office in March, should inherit a recovering economy. Indicators for Q4 paint a mainly positive picture: Economic activity in November handsomely beat expectations thanks to a stronger non-mining sector, while consumer confidence turned positive for the first time in several years in December. In addition, prices for copper, Chile’s key export, rose markedly in the second half of the year on robust global demand, boding well for the external sector. On the downside, business sentiment dipped for a second consecutive month in December, likely on the back of political uncertainty leading up to the second round of presidential elections. Furthermore, the labor market has softened somewhat, while construction activity remains in contractionary territory. This comes after growth in the third quarter picked up significantly thanks to greater mining exports and solid private consumption.