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Chile's GDP posts largest quarterly drop in over 2 years

Saturday, November 19, 2022
Chile's GDP posts largest quarterly drop in over 2 years

SANTIAGO (Reuters) -Chile's economy posted in the third quarter its largest sequential drop in more than two years, central bank data showed on Friday, as recession concerns grow in the world's largest copper producer.

Gross domestic product (GDP) contracted 1.2% from the second quarter, the central bank said, its largest decrease since the second quarter of 2020, when the economy dropped 13% as the COVID-19 pandemic hit the Andean country.

Economists polled by Reuters had expected a 1.0% quarter-on-quarter fall.

Chile's economy recovered rapidly from the pandemic-related downturn but was then hit by soaring inflation, leading the local central bank to hike interest rates aggressively to the current 11.25%.

On a yearly basis, according to the central bank, Chile's economy expanded 0.3% in the third quarter, slightly above expectations of a 0.2% increase.

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02-12-2022 20:40:25 (UTC+7)

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