According to data published on Monday by the Central Bank (BCG) Imacec, a standard indicator of Chile’s GDP, showed no change in August compared to the same month in 2021.
The figure surprised analysts, who had expected a drop of up to 1.5% for the month.
The seasonally adjusted series rose 0.6% from the previous month, compared with -0.7% estimated by analysts polled by Bloomberg, and no change in the twelve months determined by the performance of services, especially education.
According to a statement from the issuing authority, this result is explained by “increases in services activity, offset by declines in mining and trade”.
Non-mining Imacec rose 1.3% over twelve months, up 0.7% on a seasonally adjusted basis from the previous month and after three consecutive months of decline.
Although this figure is better than expected by experts, it shows the growing slowdown of the Chilean economy.
The country is affected by local and international events, especially by the persistence of high inflation.
All forecasts show that the country will experience a recession by 2023.
According to BCCH’s September Monetary Policy Report, the economy could contract by -0.5% to -1.5% next year.
Andrés Pérez, chief economist at Itaú, said the economy is still expected to contract in the coming months, reflecting several factors, including “more contractionary macro policies and a more difficult external scenario.”
With information from Bloomberg online
