Economists predict Chile’s recession after lower-than-expected second-quarter GDP

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Chile’s gross domestic product (GDP) growth came in below expectations in the second quarter of 2022, Chilean central bank data showed on Thursday, prompting economists to predict a possible recession as pandemic-related stimulus tightens. is undone.

The Andean country’s economy grew by 5.4% in the second quarter compared to the same period a year earlier, but did not show growth compared to the previous three months in seasonally adjusted terms.

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Economists polled by Reuters had expected expansion of 5.7% from a year earlier and 0.3% from the previous quarter.

The performance highlighted Chile’s struggle to grow as the central bank aggressively tightens its monetary policy to rein in rising inflation, which hit a nearly three-decade high last month.

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The central bank said in a report that data was mixed across sectors, with personal care and transportation fueling growth in service activities, while mining and agriculture activities fell year-on-year in the world’s biggest copper producer.

In the first quarter, Chile’s economy had retreated 0.8% from the previous three months, losing ground after a solid recovery from the slowdown in the pandemic last year.

Source: CNN Brasil

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