Chile GDP Growth At 1-1/2-Year High in Q3

The economy of Chile advanced 2.2 percent year-on-year in the third quarter of 2017, following an upwardly revised 1 percent growth in the previous period and matching market consensus. It was the strongest expansion since the first quarter of 2016, as household spending rose faster and exports rebounded while investment fell less.

Year-on-year, household spending increased 2.8 percent, higher than a 2.6 percent rise in Q2. Gross fixed capital investment contracted less (-2.3 percent compared to -4.6 percent in Q2), but marked the fifth consecutive quarter of declines. Construction investment fell 7.5 percent (-7.6 percent in Q2) and investment in machinery and equipment advanced at a faster pace (6.4 percent compared to 0.7 percent in Q2). Meanwhile, government spending slowed (2.2 percent compared to 3 percent in Q2). Exports rose 3 percent, recovering from a 3 percent decrease in Q2, as sales of industrial, agricultural and mining products rebounded. Meantime, imports went up at a softer 4.4 percent compared to a 6.7 percent surge in Q2.

On the production side, mining activity rebounded sharply (7.5 percent compared to -3 percent), mainly driven by copper production (8.2 percent compared to -2.3 percent). Also, manufacturing grew faster (1 percent compared to 0.4 percent), boosted by stronger production of wood and furniture; crude oil refining and metal products, machinery and equipment. In addition, higher growth rates were also recorded for: fisheries (14 percent compared to 8.9 percent in Q2); internal trade (4.4 percent compared to 3.5 percent); utilities (4.1 percent compared to 0.8 percent); transport (2 percent compared to 0.8 percent); financial services (4.3 percent compared to 3.6 percent) and personal services (3.1 percent compared to 2.8 percent). On the other hand, output grew less for restaurants and hotels (0.9 percent compared to 1.1 percent); communication and information (3.8 percent compared to 4 percent); real estate activities (2.5 percent compared to 2.9 percent) and public administration (1.8 percent compared to 2.3 percent). Meantime, output declines were recorded for agriculture (-1.3 percent compared to 0.3 percent); construction (-6 percent compared to -3.7 percent) and business services (-1.7 percent compared to -2.3 percent).

On a quarterly basis, the GDP expanded 1.5 percent, following an upwardly revised 0.9 percent growth in Q2.

Chile GDP Growth At 1-1/2-Year High in Q3

Banco Central de Chile | Luisa Carvalho |
11/20/2017 1:44:39 PM