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Chile’s Second-Quarter GDP Expands 1.9%

Robert Kozak by Robert Kozak
August 18, 2015
in Business
Reading Time: 1 min read
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The FINANCIAL — Chile’s economy expanded 1.9% in the second quarter over the same period a year earlier, due to gains in a number of sectors, especially in services and construction, the central bank said on August 18, according to Nasdaq.

On a seasonally adjusted basis, gross domestic product was unchanged from the previous quarter, the central bank said.

The second quarter also saw a sharp increase in domestic demand, with a 2% gain over the same period the year before, driven by consumer spending.

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Investment spending continued to decline, however, dropping 3% in the quarter year-over-year, as spending on machinery and equipment plummeted.

Chile’s economy has been hit by declining prices for commodities, especially for its main export, copper. That has led to a drop in investments in the key mining sector.

The central bank’s directors said last week that economic growth remains weaker than expected.

The central bank also said on August 18 that Chile posted a second-quarter surplus in its current account of $761 million, or the equivalent of 1.2% of GDP. That was due to a stronger trade surplus, tied to a greater decline in imports than in exports in the quarter.

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