Chile: Economic activity loses steam in September
November 5, 2018
According to the IMACEC monthly economic activity index published by the Central Bank of Chile, economic activity rose 2.3% in annual terms in in September, down from the previous month’s 3.2% increase. The print marked the weakest reading in the past year and confirmed a marked slowdown in economic activity in the third quarter.
The overall expansion was once again led by non-mining activity, with the non-mining index up 2.5% in annual terms in September. September’s print, however, came in significantly below the August’s 4.0% year-on-year increase, largely due to a drop in manufacturing activity. Moreover, mining activity continued to contract in September, although at a weaker rate compared to the previous month (September: -2.0% yoy; August: -5.1% yoy).
In seasonally-adjusted terms, economic activity rose 0.4% month-on-month in September, bouncing back from a 0.1% contraction in August. Meanwhile, growth in annual average economic activity remained stable at August’s four-year high of 4.0% in September.
Chile GDP Forecast
The Central Bank sees GDP expanding between 3.3%–4.3% in 2019 and between 2.8%–3.8% in 2020. FocusEconomics panelists see growth of 3.4% in 2019, which is down 0.1 percentage points from last month’s forecast, and 3.0% in 2020.
Author: Almanas Stanapedis, Economist