Chile: Economic activity grows at record pace in June
August 2, 2021
Economic activity rose 20.1% year-on-year in June (May: +18.1% yoy). June's result marked the best result on record. Looking at the details of the release, the mining sector dropped at a faster rate in June, while the non-mining sector grew at a stronger pace.
On a monthly basis, economic activity rose 2.1% in seasonally-adjusted terms in June, which was down from May’s 2.8% uptick but markedly overshot analysts’ expectations of 0.6% growth. Meanwhile, the trend improved notably, with the annual average variation of economic activity coming in at plus 1.7%, contrasting May's minus 0.9% reading.
The IMACEC readings suggest the economy outperformed expectations in Q2, notwithstanding a fresh wave of Covid-19 and the ensuing reimposition of restrictions, with activity aided by government stimulus and pension drawdowns. The economy should perform well moving into Q3, as Covid-19 infections have tumbled recently, allowing for the easing of restrictions in early July.