Chile: Economic activity strong in June
August 5, 2013
In June, economic activity expanded 4.2% over the same month last year, according to the monthly indicator for economic activity (IMACEC). The reading represents an acceleration compared to the 3.5% expansion observed in May and overshot market expectations of a 3.3% rise. According to the Central Bank, the June expansion was mostly due to growth in the mining and retail sectors.
On a monthly basis, economic activity rose a strong 1.0% in June, following a revised 0.8% increase in May (previously reported: +0.6% month-on-month). Despite the stronger annual growth, however, the trend still points downwards, with annual average growth in economic activity slowing from 5.1% in May to 4.9% in June.
Based on monthly figures, economic activity expanded 4.0% in the second quarter of the year, which would represent a deceleration compared to the 4.1% growth rate observed in the first quarter.
In its June Monetary Policy Report, the Central Bank cut its economic growth forecast for this year from a range of between 4.5% and 5.5% to between 4.0% and 5.0%. LatinFocus Consensus Forecast panellists 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%.