That was, nonetheless, better than the 0.9% contraction expected by economists in a Reuters poll. Underscoring the challenges, the Chilean economy shrunk 0.6% on a yearly basis in the first three months of 2023, according to central bank data. The lower-end of its outlook for 2023 stands at a 0.5% contraction, while in the next year GDP would expand 1% to 2%, less than previously forecast, according to projections released last month. The central bank itself still sees high consumer prices hindering 'sustainable' growth in the Andean country in the near term, having forecast this year's gross domestic product to grow 0.5% in the most optimistic scenario. 'We expect the economy to struggle over the coming quarters amid tight monetary policy and project a 0.3% contraction over 2023 as a whole.'

'The headline figure masks signs of pronounced weakness,' Capital Economics' emerging markets economist Kimberley Sperrfechter said. The recent economic gains broke a streak of three quarter-on-quarter declines seen in 2022, but are unlikely to drive continuous growth. Gross domestic product rose 0.8% in the first quarter from the previous three-month period, the central bank said on Thursday, up from a small 0.1% expansion a quarter before but below market consensus, as economists polled by Reuters expected a 1% increase.Ĭhile faced a slowdown last year after recovering rapidly from the COVID-19 pandemic downturn, which drove inflation higher and forced the central bank to put in place aggressive monetary tightening. SAO PAULO, May 18 (Reuters) - Chile's economy grew for the second quarter in a row in early 2023 but failed to impress market participants as recovery in the world's largest copper producer appears to remain hesitant.

Anomaly 2 steam marker