Chile's economic activity returns to growth in June as mining rebounds
SANTIAGO - Chile's economic activity index rose more than expected in June, central bank data showed on Monday, marking the first year-on-year increase in six months as stronger mining, trade and services activity boosted growth.
The IMACEC index, a proxy for gross domestic product that accounts for about 90% of Chile's economy, rose by 2.4% in June from the same month a year earlier, above the 1.5% expansion expected by economists in a Reuters poll.
The reading ended a run of five consecutive year-on-year declines.
Mining activity jumped 9.8% from a year earlier, while services grew 1.7% and trade expanded 5.4%. Goods production increased 3.9% on an annual basis, primarily due to stronger mining output, particularly copper, the central bank said.
Chile is the world's largest copper producer, and official data released last week showed production of the red metal rose 5.1% in June from a year earlier, following sharp year-on-year declines in previous months.
Finance Minister Jorge Quiroz had signalled a likely improvement in activity, saying in early July that June would "very probably" have been a month of economic growth and that he expected the trend to continue in the coming months.
Pantheon Macroeconomics' chief Latin America economist, Andres Abadia, said he expects activity to strengthen gradually during the second half, but cautioned that Chile's economic recovery remains heavily dependent on mining.
"High copper prices, stronger mining production and exceptionally favourable terms of trade should continue to support growth," he added in a note to clients. "Mining and exports will remain the principal drivers of the recovery."
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Projects
Latest Multimedia
Latest News
Showroom
CMTS is a leading, well-established EC&I contractor with 37+ years of mining and industrial experience. We execute full-scope EC&I projects with...
VISIT SHOWROOM
Astore Keymak is one of South Africa’s leading suppliers of high-quality Thermoplastic Pipeline Systems, with branches in the major provinces.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
