Chile Economy Grows the Most Since 2013 in Q4

The gross domestic product of Chile advanced 3.3 percent year-on-year in the fourth quarter of 2017, following an upwardly revised 2.5 percent rise in the prior period and beating market expectations of a 2.9 percent growth. It was the fastest expansion since the third quarter of 2013, as household spending increased faster and fixed investment rebounded.

Year-on-year, household spending expanded at a faster 3 percent, compared to a 2.2 percent increase in Q3. Also, fixed investment rebounded (2.7 percent from -0.9 percent in Q3), the first gain in five quarters, as investment in machinery and equipment grew markedly (10.8 percent from 8.1 percent) while construction investment shrank much less (-1.7 percent from -5.9 percent). In contrast, government spending continued to slow (3.4 percent from 3.7 percent). Exports went up 2.5 percent, following a 2.7 percent rise in Q3 while imports advanced at a stronger 5.2 percent compared to a 2 percent increase in Q3.

On the production side, output continued to grow for: manufacturing (3.5 percent from 2.6 percent); utilities (5.4 percent from 3.8 percent); internal trade (4.7 percent from 4.6 percent); restaurants and hotels (2.1 percent from 1.5 percent); transportation (3.8 percent from 3.3 percent); information and communication (4.9 percent from 4.6 percent) and personal services (4.1 percent from 2.8 percent). In addition, production fell less for agriculture (-0.7 percent from -2.7 percent); construction (-0.1 percent from -5.3 percent) while activity recovered for business services (1.2 percent from -0.4 percent). On the other hand, output slowed for mining (6.8 percent from 8.3 percent), mainly due to lower production of copper (7.9 percent from 9.1 percent); financial services (3.3 percent from 5.1 percent) and real estate activities (2.3 percent from 2.9 percent).

On a quarterly basis, the GDP inched up 0.6 percent, after an upwardly revised 2.2 percent gain in the third quarter and slightly above market expectations of a 0.5 percent rise.

Considering whole 2017, the Chilean economy grew 1.5 percent compared to 1.3 percent in 2016. Still, growth was among the lowest since the 2009 global economic crisis.

Chile Economy Grows the Most Since 2013 in Q4

Banco Central de Chile | Luisa Carvalho |
3/19/2018 4:10:28 PM