Chile GDP Growth at 5-Year Low

Chilean GDP advanced 0.8 percent year-on-year in the third quarter of 2014, the weakest pace since the 2009 recession. The economy slowed for the fourth straight quarter as mining investment contracted further.

On the expenditure side, gross fixed capital formation shrank 9.9 percent after falling a revised 8.4 percent in the preceding period. Investment in machinery and equipment dropped sharply by 24.6 percent. Household consumption advanced 2 percent, slowing slightly from a 2.1 percent expansion in the previous period and government consumption increased at a slower 1.8 percent (2.5 percent in the three months to June). Exports rose a meager 1 percent while imports fell 7.2 percent.

On the production side, agriculture and forestry contracted 6.6 percent, hurt by lower production of vegetables and manufacturing shrank 2.7 percent. The mining sector contracted 0.5 percent, following a 3.9 percent expansion in the previous period, dragged down by a 1.7 percent drop in copper output. In contrast, electricity surged 8.4 percent and fishing increased 10.7 percent.

On a quarter-on-quarter seasonally adjusted basis, the economy expanded 0.4 percent in the three months to September, rebounding from a revised 0.1 percent contraction in the previous period.

Chile GDP Growth at 5-Year Low

Banco Central de Chile | Ricardo Martins |
11/18/2014 12:45:05 PM