Chile September Output Down 5.3 Percent from 2019, Up 5.1 Percent from August

RIO DE JANEIRO, BRAZIL – Chile’s economic output sank 5.3 percent in September year-on-year but grew 5.1 percent from the previous month, the central bank said on Monday, November 2nd, as the world’s no. 1 copper producer emerged from the worst period of the coronavirus pandemic.

The Andean country’s IMACEC economic activity index, which encompasses about 90 percent of the economy tallied in gross domestic product figures, ordinarily sees a bounce in September as its citizens celebrate the annual independence holidays.

Mining activity declined 1.9 percent on the same month the previous year, an improvement from the 3.4 percent drop reported the previous month, while non-mining activity fell 5.7 percent, compared to a drop of 12.2 percent in August. Mining activity fell 1.5 percent from August while non-mining activity rose 5.9 percent, according to seasonally adjusted figures.

The worst-hit sectors were construction, education and transport along with restaurants and hotels, the bank said, while commerce, business services and manufacturing rallied.

Mauricio Carrasco, an analyst with Chilean consultancy Econsult, said figures released on Friday showed that retail sales had experienced a bounce from the withdrawal by citizens of 10 percent of their privately held pensions under a new law to counter the effects of the pandemic.

“The September data confirms the acceleration of economic activity as confinement measures are eased and people movement increases,” he said.

Previous months have seen double-digit falls in activity compared to the same month the previous year. In August, activity dropped 11.3 percent, it sank 10.7 percent in July, 12.9 percent in June and 15.2 percent in May.

The coronavirus hit Chile in March and strict nationwide lockdowns and nighttime curfews were announced that saw shops shuttered, offices closed and mining of the key copper commodity forced to downscale staffing and suspend maintenance projects and smelters.

In August, as contagion rates eased and hospital beds freed up, the country began to ease lockdowns.

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