Chile: Economic growth jumps to a multi-year high in March
May 7, 2018
Economic activity surged 4.6% in March in annual terms, according to the Monthly Indicator for Economic Activity (IMACEC) published by the Central Bank of Chile. The result came in above February’s 4.0% growth, overshooting analysts’ expectations of a more modest 3.0%-4.0% increase and marking the strongest expansion in more than four and a half years. March’s print confirmed that the Chilean economy got off to a very solid start in the first quarter.
The expansion was led by impressive growth in mining activity, with the mining IMACEC soaring nearly one third year-on-year in March. However, it is important to note that growth rates in the first quarter continued to be influenced by the low base of comparison caused by the shutdown of the La Escondida mine last year. Nevertheless, non-mining activity also expanded at a healthy pace in March on the back of the trade and services sectors, albeit at a much slower pace than mining activity.
In seasonally-adjusted monthly terms, economic activity rose 0.5% in March from a month earlier, slowing from February’s 0.9% growth.
Author: Almanas Stanapedis, Economist