Economic Indicator Briefing - Chile - Gross Domestic Product

In the third quarter, gross domestic product (GDP) increased 4.8% over the same period last year. The reading was up from the 4.5% expansion recorded in the previous quarter (previously reported: +4.3% year-on-year) and also came in slightly ahead of market expectations, which had anticipated the economy would expand 4.7%. The acceleration over the previous period reflected faster growth in the domestic sector. Private consumption accelerated a notch and expanded a strong 5.8% annually (Q2: +5.7% year-on-year), despite high interest rates and elevated inflation. Moreover, investment soared 30.1% over the same period last year, which was up from the already strong 24.4% expansion recorded in the second quarter. Investment benefited from surging growth in machinery and equipment, which expanded a staggering 49.7% over the same quarter last year.

In the external sector, exports reverted from a 1.4% annual contraction in the second quarter to a 6.5% expansion. Imports also accelerated, from 15.5% annual growth in the second quarter to 20.5%. As a result, the net contribution of the external sector to overall growth remained broadly unchanged, from -7.3 percentage points in the second quarter to -7.5 percentage points.

At the sector level, the acceleration over the previous period was caused by faster growth in agriculture as well as in the services sector. In contrast, industrial output slowed from 3.2% in the second quarter to 2.9%.

A quarter-on-quarter comparison does not corroborate the acceleration suggested by the annual figures. According to seasonally adjusted figures, the economy contracted 0.06% over the previous quarter, which contrasted the 1.79% expansion registered in the second quarter.

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