Chile’s GDP grew by 7.2% during the first quarter of 2022

RIO DE JANEIRO, BRAZIL – The Chilean economy expanded by 7.2% in the first quarter of 2022 compared to the same period last year, driven mainly by trade and personal, transport, and business services, the Central Bank reported Wednesday.

“In contrast, the sectors that fell back were mining, agricultural and forestry activities, and fishing,” the issuer added in its National Accounts Report.

The GDP variation is more than half a point less than markets expected, while seasonally adjusted GDP between January and March fell 0.8%.

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 is registering inflation unseen since the 1990s.

During the first three months of the year, domestic demand increased by 13%, driven by household consumption, while gross fixed capital formation (investment) registered an expansion of 8.8%, “influenced by both investment in machinery and equipment and by the construction and other works component,” the bank explained.

Concerning foreign trade in goods and services, exports fell by 1.4 %, mainly due to lower shipments of copper and fruit.

On the other hand, imports increased 17.5%, highlighting the arrival of machinery and equipment, fuels, and clothing.

Real gross national disposable income grew by 9.6%, an increase greater than that observed in GDP due to improved trade, while total gross savings amounted to 27.4% of GDP in nominal terms.

In early May, the Chilean government lowered its growth forecast for 2022 to 1.5% from the 3.5% estimated in January by the previous administration and raised its 12-month cumulative inflation estimate for the end of the year to 8.9%.

With information from EFE