The economy Chilean it fell 0.6% in the first quarter of 2023 compared to the same period of the previous year, less than expected, due to a downward incidence of trade and the agricultural-forestry sector, the Central Bank reported on Thursday.
Personal services, on the other hand, were the main contribution to the rise, partially offsetting the previous effect, the issuer points out in its National Accounts Report.
The drop in GDP is three points lower than what the markets expected, while the seasonally adjusted GDP reported an acceleration of 0.8% in economic activity compared to the fourth quarter of the previous year.
After a historic GDP rebound of 11.7% in 2021, the biggest expansion in four decades, the Chilean economy slowed down and registered inflation unprecedented since the 1990s.
During the first three months of the year, domestic demand, meanwhile, fell 8% reflecting lower investment and consumption; while gross fixed capital formation (investment) fell by 2.1% both due to investment in machinery and equipment and household consumption.
Regarding the foreign trade of goods and services, exports increased 2.4% and imports fell 17.4%, highlighting a lower arrival of machinery and equipment, clothing and fuel.
Real disposable gross national income grew by 0.1%, reflecting an increase in the terms of trade, while total gross savings amounted to 21.9% of GDP in nominal terms.
The Government improved its growth forecasts for 2023 by 0.3% at the end of last year compared to the 0.7% drop that it initially calculated.
After a sharp drop in 2020, the Chilean economy recovered faster than expected from the pandemic; however, government aid and various savings withdrawals from pension funds triggered inflation to 14.1% in August 2022, the highest level in the last 30 years.
The Central Bank took unprecedented measures and withdrew the monetary stimulus. Last October, the referential interest rate, called the Monetary Policy Rate (TPM), was raised to 11.25%, its highest level since 2001, and it has remained so since then.
For 2023, the Central Bank projects a contraction of between -1.75% and -0.75% and estimates that inflation will converge to the 3% target in the second half of 2024.
Source: EFE
Source: Gestion
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