Against all odds: Chilean economy grew by more than 14% in April, its best record in almost 30 years

This Tuesday we knew that the Chilean economy grew by 14% in April, a number that was of all expert predictions, the highest figure for 30 years.

The information was disclosed by the Central Bank, during the presentation of the report of the Monthly index of economic activity (Imacec) corresponding to April 2021, which is dedicated create a quote that summarizes the activity of the different sectors of the economy in a given month.

According to the results of this index for the month of April, Imacec recorded a growth of 14.1% compared to the same month of the previous year. Although a weak comparative basis contributed to the indicator, this is the best record for almost 30 years, when in 1992 the economy grew by 15.2%.

As detailed by the Central Bank, “The seasonally adjusted series decreased 1.4% from the previous month and increased 12.0% in 12 months.. The month recorded the same number of working days as April 2020, ”added the BC.

April is the second month with good Imacec records. The month of March, for example, 5.8% growth was recorded, which allowed gross domestic product (GDP) to climb to 0.3%, its best figure since quarter 2019.

On another side, The Central Bank text also detailed that the seasonally adjusted terms, the economy of Chile recorded a decrease of 1.4% if you compare it to previous months, and it made a 12% increase in 12 months.

“The decrease in the seasonally adjusted Imacec is explained by the performance of the services, reflecting the increased restrictions on the mobility of people compared to the previous month, ”the Central Bank said.

Analysis of this increase by activity

The increase in the Chilean economy is understood from various fields. First of all, according to this report, the production of goods increased by 3.8%, and this was explained from the point of view of the performance of the manufacturing industry, which grew by 11.3%, and since the rise in mining, which grew 4.1%.

In exchange, the rest of the goods decreased by 1.0%, which would be due to the fall of the national construction.

Trade has also undergone an increase which suggests the good performance of the Chilean economy. According to the Bank’s report, business activity increased 33.1%, driven by wholesale and retail sales. In addition, the report found that in seasonally adjusted indices, Chilean trade registered a decrease of 0.9% compared to the previous month.

From a service point of view, these increased by 16.3%, which is explained by the action “of services to the person, in particular education and health”. Business services, transportation, restaurants and hotels have also increased.

Surprise number and good reviews

Above all, the Minister of Finance of Chile, Rodrigo Cerda, stressed that he observes with “hope” the high index of the Chilean economy of this opportunity. During this trip, Cerda stressed that this is “very good news because in April our economy and our country was facing a lot of confinement ”. This result shows that “Even in times of containment, our economy is able to adapt more easily.”

For the owner of the Treasury, This index opens up the possibility that over the next few months, the Chilean economy will maintain these rising growth rates.

“(The figure) will allow that in the coming months, as we come out of the pandemic situation, our economy can maintain these high growth rates and can therefore continue to create jobs. This is what we hope for the future and this is what we are looking for, ”Cerda stressed.

Finally, the Minister argued that “It gives us hope, hope not only for the economy, but also hope for creating quality jobs.”

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