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Chile economic activity down 12.4% in June during pandemic; mining grows

Chile’s economic activity fell 12.4% in June from the same month a year ago, the central bank said on Monday, contracting less than expected at the peak of the coronavirus outbreak.

The bank’s IMACEC economic activity index encompasses about 90% of the economy tallied in gross domestic product figures.

Market-watchers polled by Reuters had expected a more severe contraction of 14.5%.

Finance Minister Ignacio Briones said there was little cause for celebration.

“It is a smaller decrease than the market expected, but it is still a substantial drop, which will make this second quarter the worst in a long time, with a drop in economic activity of around 14%,” Briones said in a statement.

During much of June, Chile posted over 5,000 new cases of coronavirus daily, forcing health officials to quarantine all of the capital Santiago, a city of more 6 million and the country’s economic engine.

But the world’s top copper producer has managed to shield its all-important mining industry from the brunt of the damage, the bank data showed, helping buoy overall economic activity.

Mining output grew 2.2% in June, even as non-mining activity plunged 14%, according to its figures.

The June statistic follows record-breaking drops in overall activity in both April and May.
Source: Reuters (Reporting by Dave Sherwood; Editing by Kevin Liffey, Nick Zieminski and Richard Chang)

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