Chile GDP Advances 0.9% YoY in Q2

The economy of Chile expanded 0.9 percent year-on-year in the second quarter of 2017, following a meager 0.1 percent expansion in the previous period which was the lowest since the 2009 recession. Figures came in line with market expectations as a stronger household spending was able to offset falls in investment and exports.

Year-on-year, household spending increased 2.6 percent, following a 1.8 percent rise in Q1. On the other hand, public expenditure rose less (2.7 percent compared to 4.9 percent in Q1). Gross fixed capital investment shrank 4.1 percent, following a 2.4 percent drop in Q1 and marking the fourth straight quarter of decreases. Construction investment went down 6.5 percent (-6.2 percent in Q1) and investment in machiney and equipment rose a meager 0.1 percent (4.3 percent in Q1). Exports went down 3.5 percent (-4.2 percrnt in Q1), mainly due to lower sales of mining and industrial goods and imports rose at a faster 7 percent (4.6 percent in Q1).

On the production side, higher growth rates were recorded for real estate (2.4 percent compared to 1.8 percent in Q1); communication (3.5 percent compared to 2.4 percent); transport (0.8 percent compared to 0.7 percent) and restaurants and hotels (0.7 percent compared to 0.6 percent in Q1). In addition, the output for utilities rebounded (0.6 percent compared to -0.2 percent). On the other hand, slower growth rates were seen for personal services (2.8 percent compared to 3.7 percent) and internal trade (3.4 percent compared to 5.8 percent). The manufacturing sector stalled, following a 1 percent rise in Q1. Lower production of wine, beer, tobacco, canned fruit and non-metallic minerals offset a rise in fishing, cellulose and metal products. The mining sector shrank 3 percent, following a 13.8 percent slump in the previous period. Copper production went down 2.3 percent (-14.3 percent in Q1) amid a slow recovery in the Escondida mine after the stoppage in the previous quarter. In addition, maintenance and unfavourable weather conditions also weighed down on the the sector's performance. Construction slumped 3.7 percent (-1.7 percent in Q1).

On a quarterly basis, the economy expanded 0.7 percent, following a downwardlt revised 0.1 percent rise in Q1.

Chile GDP Advances 0.9% YoY in Q2

Banco Central de Chile | Joana Taborda |
8/18/2017 1:05:03 PM