Economy grows at softest pace since Q2 2024 in Q2

Sequential growth softens in Q2: Economic growth halved in the second quarter, with GDP expanding 0.4% on a seasonally adjusted quarter-on-quarter basis (Q1: +0.8% s.a. qoq), the softest expansion in a year. On an annual basis, economic growth accelerated to 3.1% in Q2, compared to the previous quarter's 2.5% expansion.

Most sectors moderated: Looking at the details of the release, the quarterly slowdown was driven by deteriorations in private and public consumption plus exports. On the domestic front, private consumption growth eased to 0.9% in the second quarter, down from the first quarter's 1.1% expansion, while public spending swung into contraction in Q2, falling 2.0% (Q1: +8.9% s.a. qoq). Meanwhile, fixed investment growth improved to 4.0% in Q2, following the 0.2% increase logged in the previous quarter. On the external front, exports of goods and services contracted 1.3% in Q2 (Q1: +2.5% s.a. qoq), marking the worst reading in two years. Conversely, imports of goods and services growth picked up to 4.8% in Q2 (Q1: +1.8% s.a. qoq).

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Chilean GDP projections for the next ten years from a panel of 44 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable GDP forecast available for Chilean GDP.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Chilean GDP projections.

Want to get access to the full dataset of Chilean GDP forecasts? Send an email to info@focus-economics.com.