Chile: Economic activity growth gains steam in May but undershoots expectations
Latest reading: Economic activity grew 3.2% year on year in May (April: +2.5% yoy), undershooting market expectations. Looking at the details of the release, mining sector growth weakened in May, while the non-mining sector accelerated.
On a monthly basis, economic activity decreased 0.2% in seasonally adjusted terms in May, which was below April’s 0.7% expansion. Meanwhile, annual average economic activity growth rose to 2.5% in May (April: +2.3%).
Panelist insight: Explaining the below-expectations reading, Itaú Unibanco analysts said:
“While inbound tourism levels are near record high, the marginal impact is expectedly fading. Foreign tourism inflows rose by 11% YoY in May, down from the 47% registered in 1Q25. Additionally, stagnant employment levels and uncertainty around the effects of a global trade war and the conflict in the Middle East may tilt consumers towards a more conservative spending stance (as focus shifts to building savings).”