Skyline in Chile

Chile GDP Q2 2021

Chile: Economy performs strongly in Q2 despite fresh restrictions

GDP growth improved to 18.1% year-on-year in the second quarter, from 0.5% in the first quarter. The reading reflected in large part a favorable base effect, but was also the result of government stimulus measures, pension drawdowns, and the greater immunity of firms and households to the renewed lockdown measures that were imposed to curtail surging Covid-19 cases.

The upturn reflected a broad-based improvement in private consumption, public spending and fixed investment. Household spending increased 33.7% in the second quarter, which was above the first quarter’s 5.2% expansion. Public consumption grew 20.7% (Q1: +3.3% yoy). Fixed investment growth improved to 24.8% in Q2, from the 1.1% expansion logged in the prior quarter.

Exports of goods and services contracted at a milder pace of 3.0% in Q2 (Q1: -5.4% yoy). In addition, imports of goods and services growth picked up, to 39.6% in Q2 (Q1: +17.2% yoy).

On a seasonally-adjusted quarter-on-quarter basis, economic growth slowed notably to 1.0% in Q2, compared to the previous period’s 3.4% increase. Q2’s reading was the worst since Q2 2020.

Turning to Q3, year-on-year growth will slow as the base effect grows less favorable, although underlying momentum will improve, spurred by the easing of restrictions since July as Covid-19 cases have plummeted.

On the reading and outlook, Alejandro Fernández Beroš, head of research at Gemines, said:

“The results of national accounts for the second quarter were a positive surprise since the estimated growth was higher than anticipated by the IMACEC and, in addition, the first quarter was revised upwards. Private consumption is largely responsible for these results. For the rest of the year we expect a very good third quarter due to the elimination of restrictions on mobility and the maintenance of income subsidies for families.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest X Download Fullscreen