Chilean economy falls 14.1% in April with pandemic

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The indicator, the worst since the beginning of records in the country, exceeded market projections: the most pessimistic calculations projected a fall of up to 10% in the fourth month of the year.

The setback is a consequence of restrictions applied by the authorities to contain the expansion of the coronavirus, which in Chile, a country of 18 million inhabitants, has already overcome the barrier of 1,000 fatal victims and is approaching 100,000 cases.

According to the Central Bank’s Economic Activity Index (Imacec), an indicator that anticipates the subsequent calculation of GDP, the series without seasonal variations fell 8.7% in relation to the previous month and 12.4% in 12 months.

People shop at La Vega market in Recoleta, Santiago de Chile, May 6, 2020
People shop at La Vega market in Recoleta, Santiago de Chile, May 6, 2020

April is the first month that fully registers the restrictions on mobility and the closing of large commerce and most of the production activities, measures enacted to contain the spread of the coronavirus.

The halt in productive and commercial activities in the capital Santiago anticipates that the economic data for May will be even worse.

Before the pandemic, the authorities had estimated 1.1% growth for the Chilean economy in 2020, but now estimates point to a drop in GDP of between 2.5% and 4%.

Source: Exame

The indicator, the worst since the beginning of records in the country, exceeded market projections: the most pessimistic calculations projected a fall of up to 10% in the fourth month of the year.

The setback is a consequence of restrictions applied by the authorities to contain the expansion of the coronavirus, which in Chile, a country of 18 million inhabitants, has already overcome the barrier of 1,000 fatal victims and is approaching 100,000 cases.

According to the Central Bank’s Economic Activity Index (Imacec), an indicator that anticipates the subsequent calculation of GDP, the series without seasonal variations fell 8.7% in relation to the previous month and 12.4% in 12 months.

People shop at La Vega market in Recoleta, Santiago de Chile, May 6, 2020
People shop at La Vega market in Recoleta, Santiago de Chile, May 6, 2020

April is the first month that fully registers the restrictions on mobility and the closing of large commerce and most of the production activities, measures enacted to contain the spread of the coronavirus.

The halt in productive and commercial activities in the capital Santiago anticipates that the economic data for May will be even worse.

Before the pandemic, the authorities had estimated 1.1% growth for the Chilean economy in 2020, but now estimates point to a drop in GDP of between 2.5% and 4%.

Source: Exame

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