Last year, activity grew 11.7%, underpinned by aids state to face the Covid-19 pandemic.
“Among the activities that presented falls, they highlighted the mining and the industry agriculture and forestry“, explained the Central Bank in its National Accounts report.
The expansion in the second quarter was less than expected by the marketwhich anticipated a rise of 5.7% in the April-June period.
Chile looks closely at the recession technique
On the other hand, in the comparison with the immediately previous quarter and in seasonally adjusted data, the activity remained stable. In the first quarter, the GDP measured quarter over quarter contracted 0.6%, according to figures revised by the BC.
It is this data that leads economists to estimate that Chile has already entered a slowdown phase and would be close to starting a “recession technique“, which would occur in the second semester.
The comparison rates with respect to the exceptional year 2021 -when almost 90,000 million dollars were injected into the Chilean economy after state aid and early withdrawals from pension funds– They also undermine the projections for this year, which the government estimated will close with a GDP expansion of 1.6%.
The effect of mining
Another factor of concern is the inflation. In July, the Consumer Price Index (CPI) increased 1.4%, leaving 12-month inflation at 13.1%, the highest in 28 years.
Chilean exports were mainly impacted “by the lower copper shipments“, a metal of which Chile is the world’s leading producer, with almost a third of global supply. Regarding GDP, the contribution of copper mining is calculated between 10 and 15%.
In the period, “the mining fell 4.5%, a result mainly affected by copper extraction and partially offset by non-metallic mining. As in the previous quarter, the lower copper activity was a reflection of a lower availability of water, a lower ore grade and operational failures in its main operations,” the Central Bank explained.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
