Chile: Economic activity surprises on the upside in January
March 6, 2017
Economic activity rose 1.7% in January compared to the same month of the previous year, according to the Monthly Indicator for Economic Activity (IMACEC) published by Chile’s Central Bank. January’s reading was up significantly from December’s 1.2%, and overshot market expectations for the second consecutive month. It should however be noted that January 2017 included one more working day than the same month of 2016. According to the Central Bank, growth was driven by a broad-based expansion in the mining, services and commercial sectors. Although economic activity has now risen uninterruptedly since October last year, this expansion is unlikely to have continued in February, due to disruption to copper production and the unfavorable base effects of last year’s leap year.
On a monthly basis, economic activity in January grew 0.4% in seasonally adjusted terms, a deterioration from December’s 1.0% (previously reported: +0.9% month-on-month). The overall trend in January was flat, with annual average growth in economic activity remaining flat at 1.5% in January.
Author: Oliver Reynolds, Economist