Chile: Economic activity weakens in May
July 5, 2013
In May, economic activity expanded 3.5% over the same month last year, according to the monthly indicator for economic activity (IMACEC). The reading represents a deceleration compared to the 4.4% expansion observed in April and undershot market expectations of a 3.9% increase. According to the Central Bank, the May expansion was mostly due to strong growth in the commercial sector.
On a monthly basis, however, economic activity rose a healthy 0.7% in May, following a revised 0.1% increase in April (previously reported: +0.2% month-on-month). That said, as a result of the slower annual growth in May, the trend still points downwards, with annual average growth in economic activity slowing from 5.3% in April to 5.1% in May.
In its latest Monetary Policy Report from June, 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 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%.