Chile’s economy contracted 0.1% in the third quarter

Chile’s economy contracted 0.1% in the third quarter compared with the previous three-month period, central bank data showed on Tuesday, in contrast to market expectations of a 0.1% expansion in a Reuters poll.

This contraction compared with a 0.4% expansion in the second quarter, and marked the end of four consecutive quarters of growth.

According to the central bank, quarterly economic activity was mainly hampered by the key mining sector.

On an annual basis, gross domestic product grew 1.6% in the period, also below the 1.9% growth expected by economists.

“Mining declined, impacted by lower copper extraction,” the monetary institution said in a statement, with a decline of 6.5% annually.

Chile, the world’s largest copper miner, saw its production of the red metal hit by an accident at its El Teniente mine – Codelco’s most profitable operation – in late July.
Source: Reuters