Chile: Economic growth accelerates in January
March 7, 2011
In January, economic activity rose 6.8% over the same month last year, according to the monthly indicator for economic activity (IMACEC, Indicador Mensual de Actividad Economica). The reading came in above the 5.7% expansion registered in December and overshot market expectations of economic activity rising by 6.0%. The January increase was fuelled by a strong commerce sector. In addition, January this year counted one working day more than in the same month last year, which contributed to the to the strong result. A month-on-month comparison corroborates the acceleration suggested by the annual figures, as economic activity jumped 1.3% over the previous month in seasonally adjusted terms, after a flat reading in December. As a result of the strong January expansion, the trend continues to point upwards, with annual average growth rate rising from 5.2% in December to 5.4% in January, which marks the fastest pace since March 2006. For this year, the Central Bank expects economic growth to range between 5.5% and 6.5%.