Chile: Economic activity drops in February
Latest reading: Economic activity dropped 0.1% compared to the same month a year earlier in February, which contrasted January’s 2.3% increase and market expectations for an expansion. February’s result marked the worst reading since June 2024, and was due to weaker readings in the mining and non-mining sectors.
On a monthly basis, economic activity decreased 0.5% in seasonally adjusted terms in February, contrasting January’s 0.2% expansion and marking the worst result since May 2024.
A near-nationwide power outage was a key driver behind the weaker economic activity data in February.
Panelist insight: On the reading and outlook, Goldman Sachs Sergio Armella said:
“All in all, despite the weak […] GDP reading for February, non-mining activity remains on track for a firm expansion in the first quarter of 2025. Moreover, the impact from the power outage in February was short-lived and activity is therefore likely to bounce back in March. The firm impulse to commercial activity in recent months, however, is likely to moderate as the seasonally high tourism from neighboring countries fades. Over the next months, we expect non-mining activity to return to a positive growth path, for the output gap to remain around zero, and for mining output to rise.”