Chilean economy shrinks by 1.1% yoy in Q2 2023

Chile’s Gross Domestic Product (GDP) experienced a year-on-year decline of 1.1% in the second quarter of 2023, primarily due to dips in sectors like trade, transportation, mining, and manufacturing, as stated by the Central Bank on Friday.

Domestic demand, in turn, decreased by 5.6% during the aforementioned period, driven by reduced household investment and consumption, according to the bank’s National Accounts Report for Q2 2023.

The Central Bank’s report highlighted that despite the decline, the country’s net exports had a positive impact on the GDP because of a significant drop in imports.

Additionally, the GDP’s drop was “partially” offset by an increase in the value-added from electric power generation.

When seasonally adjusted, Chile’s economic activity witnessed a 0.3% decline compared to the previous quarter due to a slowdown in net exports.

However, this was partially offset by the mining sector’s performance.

Furthermore, during the first seven months of 2023, Chile’s trade totaled US$107.358 billion, marking a 10.1% reduction from the same period in 2022, as the Directorate of Studies of the Undersecretariat of International Economic Relations reported last week.