Chile: Economic activity indicator picks up speed in June
August 7, 2017
Economic activity rose 1.4% in June on an annual basis, according to the Monthly Indicator for Economic Activity (IMACEC) published by Chile’s Central Bank, beating market expectations of a 1.1% increase. This followed May’s slightly softer 1.3% increase, and is a further sign that the economy is gradually dusting itself off following a sickly performance in the February-April period.
The decline in the mining IMACEC softened sharply in June, as production at the Escondida mine continued to ramp up again following a protracted labor dispute. In this sense, the recent avoidance of strike action at the Zaldivar and Centinela mines thanks to government-mediated talks bodes well for the continuing recovery of the mining IMACEC going forward. The trade and service sectors grew at a healthy rate in June, more than compensating for falls in the construction and manufacturing sectors. On a monthly basis, economic activity rose 0.5% in seasonally adjusted terms, mirroring May’s figure. The overall trend in June was flat, with annual average economic growth remaining at 0.8%.
Author: Oliver Reynolds, Economist