Chile Q1 Annual GDP Growth Strongest Since 2013

The gross domestic product of Chile expanded 4.2 percent year-on-year in the first quarter of 2018, quickening from a 3.3 percent advance in the previous period and slightly above market expectations of a 4.0 percent growth. It was the fastest expansion since the third quarter of 2013, as household spending, fixed investment and exports rose significantly. Among economic activities, the mining sector was the main contributor to growth.

Year-on-year, household spending grew at a faster 3.9 percent, up from a 3.0 percent increase in Q4. Also, fixed investment continued to rise (3.6 percent from 2.7 percent), as construction investment rebounded (2.0 percent vs -1.7 percent) while that in machiney and investment slowed (6.5 percent vs 10.8 percent). Also, net external trade contributed positively to growth as exports jumped (7.2 percent vs 2.5 percent) and imports advanced at a softer pace (6.1 percent vs 5.2 percent). On the other hand, government spending increased less (2.7 percent vs 3.4 percent).

On the production side, output increased solidly in: mining and quarrying (19.3 percent vs 6.8 percent), boosted by both copper production (20.6 percent vs 7.9 percent) and other mining activities (8.4 percent vs -3.2 percent); internal trade (6.0 percent vs 4.7 percent); restaurants & hotels (3.6 percent vs 2.1 percent); transportation (4.9 percent vs 3.8 percent); financial services (4.1 percent vs 3.3 percent); business services (3.5 percent vs 1.2 percent); personal services (4.6 percent vs 4.1 percent) and utilities (5.7 percent vs 5.4 percent). Also, the construction sector rebounded sharply (3.2 percent vs -0.1 percent), posting the strongest gain since the third quarter of 2016 (3.6 percent). Conversely, production slowed in information and communication (3.1 percent vs 4.9 percent); real estate activities (2.2 percent vs 2.3 percent); manufacturing (2.8 percent vs 3.5 percent); while it shrank in agriculture (-2.3 percent vs -0.7 percent) and fishing (-6.5 percent vs 4.6 percent).

On a seasonally adjusted quarterly basis, the GDP expanded 1.2 percent, after an upwardly revised 0.7 percent rise in the fourth quarter and slightly above market expectations of a 1 percent growth.

Chile Q1 Annual GDP Growth Strongest Since 2013

Banco Central de Chile | Luisa Carvalho |
5/18/2018 1:33:58 PM