Chile GDP Growth Slightly Above Expectations


The Chilean economy advanced 1.9 percent year-on-year in the second quarter of 2015, slightly above market expectations but slowing from an upwardly revised 2.5 percent expansion in the first three months of the year. Household and government spending drove the expansion while investment and exports contracted.

On the expenditure side, both household and government consumption slowed to 1.6 percent and 3.6 percent respectively (from 1.9 percent and 5.7 percent respectively in the first quarter) while gross fixed capital formation shrank for the second consecutive period by 3 percent (-1.9 percent in the first quarter). In addition, exports fell 4.9 percent and imports went down 5.1 percent (from 1.5 percent and -2.3 percent respectively in the first quarter). 

On the production side, personal services was the main contributor to the expansion (up 3.1 percent year-on-year), followed by business services (up 1.8 percent year-on-year), construction (up 3.6 percent year-on-year) and financial services (up 4.6 percent year-on-year).

The mining sector advanced 0.9 percent year-on-year, slowing sharply from a 3.3 percent increase in the first three months of the year. Copper production grew 0.6 percent (2.8 percent in the first quarter). The manufacturing sector expanded 0.2 percent, rebounding from a 0.2 percent drop in the previous period while agriculture grew 3.7 percent (7.5 percent in the first quarter). In contrast, fishing and activities in restaurants and hotels dragged growth down (-8.5 percent year-on-year and -0.9 percent year-on-year respectively).

On a quarter-on-quarter seasonally adjusted basis, the economy stagnated, after growing an upwardly revised 1.1 percent in the first three months of 2015.

Considering the first six months of the year, the GDP increased 2.2 percent.

Chile GDP Growth Slightly Above Expectations


Joana Taborda | joana.taborda@tradingeconomics.com
8/18/2015 1:14:28 PM