Chile: Economic activity edges up in April
June 5, 2017
Economic activity ticked up 0.1% in April on an annual basis, according to the Monthly Indicator for Economic Activity (IMACEC) published by Chile’s Central Bank. This followed the revised 0.3% rise recorded in March (previously reported: +0.2% yoy) and matched analysts’ expectations. It should however be noted that April 2017 contained three less working days than the same month of the prior year, which depressed the final figure.
The strike at the Escondida copper mine, the world’s largest, has bitten a significant chunk out of economic activity in recent months. Although strike action ended in March, it has taken longer than expected to ramp up production again, with a consequent impact on the economy at the start of Q2; the mining IMACEC fell in April. The manufacturing sector also declined, while the service sector rose compared to the same month of the previous year.
On a monthly basis, economic activity in April rose 0.9% in seasonally adjusted terms, an improvement from March’s 0.3% drop. The overall trend in April pointed downwards, with annual average growth in economic activity dipping from 1.0% in March to 0.9% in April.
Author: Oliver Reynolds, Economist