Economic activity in Chile June 2022

Economic activity rose 3.7% year-over-year in June, a decline from May’s 6.4% increase. The June results were the worst reading since February 2021. The weakness observed in June was partly driven by a sharp drop in the mining sector. In addition, weak growth in the non-mining sector.

On a monthly basis, economic activity declined 0.2% on a seasonally adjusted basis in June, matching the decline in May. Meanwhile, the trend pointed to a decline, with the average annual growth of economic activity reaching 10.3% in June, down from 11.7% in May.

Data for the second quarter as a whole indicates that the economy expanded slightly on a quarterly basis in this period. However, economic activity is expected to slip back into contraction in the third and fourth quarters due to higher interest rates, double-digit inflation and weak business confidence.

FocusEconomics panel members see GDP growing 2.0% in 2022, unchanged from last month’s forecast. In 2023, GDP is expected to expand by 0.5%.

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