Chile: Economic activity expands at robust pace in September
November 5, 2010
In September, economic activity rose 6.5% over the same month last year, according to the monthly indicator for economic activity (IMACEC, Indicador Mensual de Actividad Economica). The reading came in below the 7.6% expansion registered in August, but slightly exceeded market expectations, which had anticipated economic activity would rise 6.4%. The September increase was fuelled by growth in retail, wholesale, transportation and communications sectors. Based on the preliminary monthly data, the economy expanded a solid 7.1% in the third quarter, above the 6.5% expansion recorded in the second quarter. A month-on-month comparison corroborates the expansion suggested by the annual figures, as economic activity rose 0.36% over the previous month in seasonally adjusted terms, which contrasted the previous month's 0.20% fall. As a result of the robust September expansion, the annual average growth rate rose from 3.7% in August to 4.3% in September. The Central Bank expects economic growth to range between 5.0% and 5.5% this year and between 5.5% and 6.5% for 2011. Consensus Forecast panellists broadly share this view and see economic activity growing 5.3% this year, which is unchanged from last month's forecast. For 2011, the panel sees economic growth reaching 6.0%.