Chile’s economic activity increased for the third consecutive month in Decembersince factors such as rates of lower interest and strong copper production helped to stabilize growth after a period of volatility.
The IMACEC index, An indicator of Gross Domestic Product, rose 0.9% compared to Novemberabove the median estimate of 0.7% of analysts in a Bloomberg survey. The activity increased 6.6% compared to the previous yearmore than all forecasts and the greatest increase since January 2022, the Central Bank reported Monday.
Chile’s economy stabilized at the end of an unstable year, since the last projections of the Central Bank show that the gross domestic product probably expanded 2.3%. The lower costs of indebtedness and real wage earnings promoted the demand, while Copper production, the country’s main export product was also strengthened. Even so, there are winds against, including the weak job creation and global commercial uncertainty as Donald Trump launches tariffs.
According to the Central Bank, Mining increased 4.7% in December and was the main growth engine. Commerce increased 2.7% thanks to earnings in car sales and wholesale. The services remained without changes in the period.
“In general, this marks a solid end to the quarter, with an increase in the total product of 0.4% intertrimestral in the fourth quarter,” Andrés Abadía, chief economist for Latin America of Pantheon Macroeconomics, wrote in a note. The activity report “supports our expectation of a stable interest rate in the short term. Assuming that there are no important reviews, real GDP grew approximately 2.8% in 2024 ”.
Those responsible for monetary policy, headed by Rosanna Costa, maintained the stable reference interest rate in 5% last week, which represents the first time it has been maintained since July. Yes BiIn indebted costs they have dropped from a maximum of 11.25% in mid -2023Board members indicated that they could remain unchanged in the future due to short -term inflation problems.
Annual inflation closed 2024 by 4.5%, well above the 3%targetand Costa has said that consumer prices increases will remain about 5% earlier this year. The increases in the cost of living are pressed by a weak currency and increases in electric rates.
In more general terms, the Chilean Congress eliminated a source of uncertainty last week, when He gave his final approval to a long -sought pension reform. The legislation, which will increase payments for both current and futures retirees, also helped boost the stock market to a historical maximum.
According to the proposal, For the first time employers must make contributions to individual savings accounts for the retirement of workers. These new amounts will be invested by pension fund managers, known as AFP.
The Central Bank of Chile will publish the official GDP report on the fourth quarter on March 18.
