Chile: Economic activity slows to 14 month-low
April 5, 2013
In February, economic activity expanded 3.8% over the same month last year, according to the monthly indicator for economic activity (IMACEC). The reading represented a deceleration compared to the revised 6.5% expansion (previously reported: +6.7% year-over-year) observed in January and fell short of market expectations of a 4.8% increase. The print represents the lowest figure recorded in more than a year. According to the Central Bank, the result was mostly affected by fewer working days in February this year as compared to February 2012.
On a monthly basis, economic activity contracted a seasonally adjusted 0.1% in February, which followed the revised 0.2%% fall recorded in January (previously reported: +0.1% month-over-month). As a result of the slower annual growth in February, annual average growth in economic activity dropped from 5.7% in January to 5.5%.
In its latest Monetary Policy Report in March, the Central Bank sees economic growth ranging between 4.5% and 5.5% in 2013. LatinFocus Consensus Forecast panellists share this view and 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%.