Chilean Economy marks the biggest gain in five years to grow by 6.5% in the second quarterPublished: Aug
ust 20, 2010
The figure was achieved by the support of the commercial sector and a mayor expansion in the domestic demand. The GDP data exceeded the analysts' projections that reached a 6.2% for the period.
According to the Banco Central - Chilean Central Bank- , the Chilean economy has had an increase of 6.5% in the second quarter and achieved its highest advance in 5 years. The issuing authority even made a correction in the Gross Domestic Product of the first quarter from 1 to 1.5%.
This figure exceeded the market forecasts where a 6.2% was expected. Meanwhile, the seasonally adjusted GDP had a 4.3% increase.
During the second quarter of 2010 the Banco Central emphasized the dynamism of the domestic demand that showed a 19.4% expansion in the period, boosted by the consumption and investment, exceeding the 11.8% of the previous quarter.
At the same time, the gross fixed capital formation reached a 28.6% rate after growing an 8.1% in the previous period. The expansion was led by the imports of machineries and equipment, achieving a historical record of a 64.5% increase in the same import category of goods.
The monetary authority said that, from the origin perspective, it is important to highlight the dynamism of the Commerce, Communications, Transportation and the Electricity, Gas and Water sector and that in less proportion, there was also growth in Construction, Personal services, Agricultural-forestry and Mining industries.
The growth in consumption principally reflected the great expense in durable goods. Regarding investment, he emphasized the one related to machinery and equipment and the accumulation of stocks. According to exports of goods and services there was a 0.2% and imports had a 33.3%.
Sectorshe GDP boost was led by Commerce, sector which had the most impact. In this category the area of restaurants and hotels grew in 16.8%. As usual, the commercial sub activity was the one to determine the magnitude of the sectorial result.
After growing 21.3% in the last quarter, the Electricity, Gas and Water sector grew 37.4% achieving the maximum historical record of the year-over-year rate of the sector.
The Transportation sector grew 10% contrasting with the growth speed of the previous quarters.
The Mining sector had a 0.6% variation, after growing 2% the last quarter. The figure is the result of a delimited increase in the copper production and a drop in the rest of the mining industry.
The Manufacturing industry had a 0.5% drop contrasting with the reduction of 6.1% in the previous quarter. The result shows that the effects of the earthquake in February have been reduced as the affected industries have been recovering their operative capacity.
The Construction sector grew 3.0% after dropping 1.4% in the last quarter. The boost came from the investment in building and the expense in repairs and demolitions, while the investment in engineering works showed a marginal drop.