Chile: Economic activity expands in July
September 5, 2013
In July, economic activity expanded 5.3% over the same month last year, according to the monthly indicator for economic activity (IMACEC). The reading, which represents an improvement over the 4.1% expansion observed in June, undershot market expectations of a 5.9% rise. According to the Central Bank, the expansion in July was primarily due to growth in mining and trading activities.
On a monthly basis, economic activity showed flat growth in July, marking a deterioration over the 0.7% expansion recorded in June. Despite the improvement suggested by the annual increase, the trend still points downwards, with annual average growth in economic activity inching down from 5.0% in June to 4.9% in July.
The Central Bank indicated in its September Monetary Policy Report that it expects the economic growth to range between 4.0% and 4.5% in 2013 and 2014. 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%.
Author: Dirina Mançellari, Senior Economist