Chile: Economic growth surges in February but misses expectations
Economic activity rose 4.0% in February on an annual basis according to the Monthly Indicator for Economic Activity (IMACEC) published by Chile’s Central Bank, down from January’s downwardly revised 3.5% growth (previously reported: +3.9% yoy) and undershooting analysts’ expectations. However, February’s reading still meant the economy started 2018 on a robust footing.
Growth was underpinned by a surge in mining activity compared to the prior year. This was partly due to a favorable base effect, as workers at the Escondida copper mine—the world’s largest—were on strike in February last year. However, encouragingly, non-mining activity also rose at a solid pace, underpinned by the trade and services sectors. Economic activity rose 0.9% in February from a month earlier in seasonally-adjusted terms, up from January’s flat reading (previously reported: +0.8% month-on-month).