Chile Q2 GDP Growth Beats Forecasts

The economy of Chile grew 1.9 percent year-on-year in the second quarter of 2019, following a 1.6 percent expansion in the previous period and beating market expectations of 1.8 percent. Growth was mainly boosted by the services sector namely personal services, real estate and business while the mining sector recovered after shrinking in the first quarter.

On the expenditure side, fixed investment grew at a faster pace (4.8 percent from 3.2 percent in Q1) boosted by construction (6.4 percent from 2.8 percent) while machinery and equipment slowed (2.0 percent from 3.9 percent). Meanwhile, growth moderated for household consumption (2.3 percent from 3.2 percent) and government spending (2.2 percent from 3.2 percent. Also, decline was observed for both exports (-3.2 percent from -2.0 percent) and imports (-3.5 percent from 1.4 percent).

On the production side, the mining activity grew 0.2 percent recovering from a 4.2 percent contraction in Q1 as copper production grew 0.6 percent (-3.3 percent in Q1). Additionally, output rebounded in fishing (5.5 percent from -3.2 percent); and utilities (0.7 percent from -0.6 percent). Also, faster growth was recorded in real estate (3.5 percent from 3.2 percent); construction (4.2 percent from 3.0 percent); and restaurants & hotels (2.4 percent from 1.4 percent) while business services advanced at the same pace (3.2 percent). Meanwhile, output contracted in manufacturing (-1.1 percent from 1.1 percent), mainly due to food (-3.6 percent from 0.2 percent), cellulose & paper (-2.7 percent from 0.9 percent), and textiles, clothing, leather and footwear (-10.4 percent from -9.0 percent). In addition, growth slowed in internal trade (1.5 percent from 2.4 percent); transport (3.7 percent from 4.2 percent); communication and information (2.1 percent from 2.9 percent); financial services (4.7 percent from 5.9 percent); and personal services (3.1 percent from 3.7 percent).   

On a seasonally adjusted quarterly basis, the economy advanced 0.8 percent, after stalling in the prior quarter.

Chile Q2 GDP Growth Beats Forecasts

Banco Central de Chile | Stefanie Moya |
8/19/2019 5:08:32 PM