Chile: Decline in economic activity softens in April
Economic activity decreased 1.1% year on year in April (March: -1.9% yoy), broadly in line with market expectations. The smaller drop was due to a notable rebound in the mining sector. In contrast, the non-mining sector shrank.
On a seasonally adjusted monthly basis, economic activity was flat in April (March: -0.2% mom). Meanwhile, the trend pointed down, with the annual average variation of economic activity coming in at 0.0%, down from March’s plus 0.5% reading.
Giving his take on the reading and the outlook, Goldman Sachs’ Sergio Armella said:
“Overall, non-mining activity was weaker than expected in April following a resilient first quarter. A very restrictive monetary stance, tighter global financial conditions, a weaker external backdrop, and domestic policy uncertainty continue to be headwinds for activity in the near term.”