Chile’s GDP grew 5.4% during the second quarter of 2022

The Chilean economy expanded by 5.4 % in the second quarter of 2022 compared to the same period last year, driven mainly by personal, transport, and business services, the Central Bank reported Thursday.

In contrast, the activities that presented the most significant falls are mining -Chile is the world’s largest copper producer- and the agricultural and forestry sector.

The gross domestic product (GDP) variation is almost lower than expected by the markets, while domestic demand increased by 8.7%, driven by household consumption, the issuer indicated.

“In seasonally adjusted terms, economic activity was unchanged from the previous quarter,” it added.

Non-mining GDP presented a 7% growth compared to the same quarter of the previous year, although in seasonally adjusted terms, it fell 0.5%.

“From an expenditure perspective, higher domestic demand was partially offset by a fall in net exports,” the bank added.

Regarding foreign trade in goods and services, exports fell 0.3%, mainly due to lower copper shipments, and imports rose 10.9%, driven by an increase in chemicals, fuels, and clothing.

Real gross national disposable income grew by 5.4%, similar to GDP, while total gross savings rose to 26.5% of GDP in nominal terms.

After a historic GDP rebound of 11.7% in 2021, the largest expansion in four decades, the Chilean economy is showing signs of cooling and recording inflation unseen in three decades, which has led the issuer to quickly withdraw the monetary stimulus it applied with the onset of the pandemic.

In July, the consumer price index (CPI) increased 8.5% this year and 13.1% in 12 months, the highest since 1994.

In July, the bank increased the benchmark interest rate by 75 basis points to 9.75%, its highest in two decades.

The issuer’s estimates for Chilean GDP growth this year are between 1.5% and 2.25%.

With information from Infobae