Chile GDP Growth Beats Forecasts in Q4

The economy of Chile advanced 3.6 percent year-on-year in the fourth quarter of 2018, following a downwardly revised 2.6 percent growth in the previous period and beating market expectations of a 2.9 percent expansion. Growth was mainly driven by a rebound in mining activity.

Year-on-year, fixed investment advanced further (5.6 percent from 4.9 percent in Q3), mostly boosted by investment in machinery and equipment (12.1 percent from 8.4 percent). Meanwhile, both household consumption (3.6 percent from 4.1 percent in Q3) and government spending (1.3 percent from 1.9 percent) slowed. Additionally, net external demand contributed negatively to growth, as imports rose 6.6 percent (vs 8.0 percent in Q3), led by purchases of automobiles and industrial and mining machinery while exports advanced at a slower 3.3 percent (vs 1.3 percent in Q3), driven by sales of copper, salmon and fruits.

On the production side, mining activity grew 1.3 percent, after shrinking 1.9 percent in Q3, mostly boosted by copper production (1.9 percent from -1.7 percent). Also, the manufacturing sector expanded at a faster pace (3.6 percent from 1.0 percent), mainly due to food (5.6 percent from 1.5 percent), metallic, machinery and equipment and others (2.0 percent from -1.1 percent); chemicals, rubber and plastic (4.7 percent from 0.2 percent) and paper and printing (7.2 percent from 3.0 percent). Additionally, faster growth was recorded in internal trade (3.8 percent from 2.9 percent); agriculture (5.7 percent from 4.0 percent); fishing (13.9 percent from 3.0 percent);  financial services (6.0 percent from 4.5 percent); business (2.9 percent from 2.2 percent);  personal services (3.9 percent from 3.8 percent); restaurants & hotels (2.4 percent from 1.5 percent); transport (5.1 percent from 3.0 percent); communication and information (3.9 percent from 3.6 percent); construction (3.1 percent from 3.0 percent); and utilities (4.2 percent from 2.7 percent). Meanwhile, real estate activities growth eased (3.3 percent from 3.6 percent).

On a seasonally adjusted quarterly basis, the gross domestic product expanded 1.3 percent, after a downwardly revised 0.2 percent gain in the prior quarter. 

Considering full 2018, the Chilean economy grew 4.0 percent.

Chile GDP Growth Beats Forecasts in Q4

Banco Central de Chile | Stefanie Moya |
3/18/2019 12:25:01 PM