The Chilean economy manages to avoid contraction and closes 2023 with 0.2% growth

Santiago de Chile, March 18 (EFE)

Additionally, on a year-on-year basis, the South American country's gross domestic product (GDP) increased by 0.4% in the fourth quarter, according to details in the National Accounts Report.

“For its part, domestic demand declined by 4.2%, mainly affected by contraction in household consumption,” the issuing agency explained.

The agency noted that activities linked to electricity, gas, water and waste management, in addition to personal services and transportation, were the biggest contributors to the observed growth. However, trade was a downside factor.

On the other hand, the central bank explained that “Investment fell by 5.3% as a result of goods – especially industrial goods – reaching -0.8% of GDP (…). Investment in construction and machinery and equipment should be reduced”.

In terms of foreign trade, both exports and imports of goods and services declined, with a positive net effect on GDP.

Exports registered a 0.3% decline, “mainly due to lower commodity exports, particularly copper and wood boards and panels.” Meanwhile, the contraction in imports was -12%, mainly due to goods, especially vehicles and fuels.

“Total gross savings are 23% of nominal GDP, national savings of 19.4% of GDP and external savings of 3.6% of GDP, related to the balance of payments of current account deficit” , the central bank emphasized.

The Chilean economy recovered faster than expected after the pandemic, with a historic increase of 11.7% in 2021, but it started slowly in 2022 and closed with 2.4% growth. EFE

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