Chile: Economic activity was flat in August in annual terms
Economic activity flatlined in August (July: +1.0% yoy). August’s result marked the worst reading since February 2021. The weakening was driven by a sharper deterioration in the mining sector and softer growth in the non-mining sector. That said, the overall reading beat market expectations for a contraction.
Moreover, on a seasonally adjusted monthly basis, economic activity rose 0.6% in August (July: -1.1% mom), the best result since March and breaking a run of four consecutive contractions.
The better-than-expected August data does not change the overall picture of an economy which is decelerating amid high inflation, rising interest rates and waning fiscal stimulus, and our panelists see quarter-on-quarter contractions in Q3 and Q4 this year.