Chile GDP Growth Slows to 2.7% YoY in Q4

Chile's economy advanced 2.7 percent in the fourth quarter of 2013 compared with a year earlier, the slowest expansion in three-and-a-half years, hurt by a sharp fall in investment. For full 2013, the GDP grew at a lower 4.1 percent, down from 5.6 percent in 2012.

On the production side, growth was mainly driven by electricity (10.3 percent yoy), retail sales (4.6 percent), public services (4.5 percent), business services (4.0 percent) and housing (3.4 percent). In contrast, fishing activities dropped by 14.2 percent and manufacturing industry contracted 1.3 percent. Agriculture slowed to 3.9 percent (from 4.5 percent in the previous quarter) and mining decelerated sharply to an annual 2.1 percent growth rate (9.4 percent in Q3).

On the expenditure side, household consumption grew the most at 4.9 percent, followed by government consumption (3.1 percent). Contrarily, gross fixed capital formation shrank 12.3 percent yoy, due to a 28.5 percent drop in machinery and equipment investment. Imports fell 5.3 percent and exports decreased 0.9 percent.

On a quarter-on-quarter basis, the economy grew 1.3 percent, after expanding 0.3 percent in the preceding three-month period.

Considering full 2013, the GDP growth was boosted by mining, retail trade and business services. Domestic demand advanced 3.4 percent, down from 6.9 percent in 2012 and 9.3 percent in 2011.

Chile GDP Growth Slows to 2.7% YoY in Q4

Isabel Felino |
3/18/2014 2:32:31 PM