Chile: Annual economic activity growth hits record high in April on favorable base effect, but underlying momentum is weak
Economic activity grew 14.0% in year-on-year terms in April, which followed March’s 5.8% growth. The print marked the best result on record, but was flattered by the highly favorable base effect. April’s upturn came on the back of improvements in the mining and non-mining sectors.
On a seasonally-adjusted monthly basis, economic activity fell at a quicker rate of 1.4% in April (March: -1.3% mom), the worst result since May 2020, with the economy weighed down by surging Covid-19 cases and the ensuing snap-back of restrictions. Meanwhile, the trend improved notably, with the annual average variation of economic activity coming in at minus 3.6%, up from March’s minus 5.7% reading.