Chile’s economy posted its biggest quarterly drop in more than two years in the third quarter, central bank data showed on Friday (18), as fears of a recession in the world’s largest copper producer grow.
Gross domestic product (GDP) contracted 1.2% from the second quarter, the central bank said, its biggest drop since the second quarter of 2020, when the economy fell 13% with the Covid-19 pandemic.
Economists polled by Reuters had expected a 1.0% drop on a quarterly basis.
Chile’s economy recovered quickly from the pandemic-related crisis, but was hit by high inflation, prompting the local central bank to aggressively raise interest rates to the current level of 11.25%.
Year-on-year, according to the central bank, Chile’s economy grew 0.3% in the third quarter, slightly above expectations for an increase of 0.2%.
Source: CNN Brasil
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