Chile: Economic activity decelerates further in October
December 5, 2013
In October, economic activity rose 2.8% over the same month last year according to the monthly indicator for economic activity (IMACEC). The figure was below the revised 4.3% expansion recorded in September (previously reported: +3.9% year-on-year) and undershot the 4.0% increase that markets had expected. According to the Central Bank, the slowdown mainly reflects a deterioration in manufacturing and in transportation services.
On a monthly basis, economic activity fell 0.08%, which followed the 0.74% contraction recorded in September. Annual average growth in economic activity edged down from 4.8% in September to 4.5% in October.
The Central Bank indicated in its December Monetary Policy Report that it expects an economic growth of 4.2% in 2013. For 2014, the Bank expects the economy to grow within a range of between 3.75% and 4.75%. LatinFocus Consensus Forecast panelists see the economy growing 4.8% this year, which is up 0.1 percentage points from last month's forecast. For 2014, the panel expects the economy to expand 4.8%, which is down 0.1 percentage points from last month's projection.
Author: Dirina Mançellari, Senior Economist