Chile: Economic activity slows down in August
October 7, 2013
In August, economic activity expanded 4.1% over the same month last year according to the monthly indicator for economic activity (IMACEC). The reading was below the 5.3% increase recorded in the previous month and overshot market expectations of a 3.8% expansion. According to the Central Bank, the monthly result reflected, "dynamism of mining and trade activities."
On a monthly basis, economic activity increased 0.68%, marking an improvement over the virtually flat reading recorded in July. Moreover, annual average growth in economic activity edged down from 4.9% in July to 4.7% in August.
The Central Bank indicated in its September Monetary Policy Report that it expects economic growth to range between 4.0% and 4.5% in 2013 and in 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%, which is down 0.1 percentage points from last month's projection
Author: Dirina Mançellari, Senior Economist