Chile: Economic activity reaches six-month low in March
May 6, 2014
In March, economic activity rose 2.8% over the same month last year according to the monthly indicator for economic activity (IMACEC). March's print, which marked the slowest growth rate in six months, was a slight deterioration compared to the 2.9% increase tallied in February. The figure just barely undershot market expectations of the index growing 2.9%. According to the Central Bank, the result mainly reflects a deceleration in mining.
On a monthly basis, economic activity contracted a seasonally-adjusted 0.17%, which contrasted the 0.22% increase observed in February (previously reported: +0.20% month-on-month). Annual average growth in economic activity inched down from 3.6% in February to 3.5% in March.
The Central Bank expects the economy to grow within a range of 3.0% to 4.0% in 2014. LatinFocus Consensus Forecast panelists see the economy growing 4.1% in 2014, which is down 0.1 percentage points from last month's forecast. For 2015, the panel expects the economy to expand 4.4%.
Author: Dirina Mançellari, Senior Economist