February 6, 2020

IMACEC for December increases by 1.1% year-on-year, ahead of market expectations

IMACEC for December increases by 1.1% year-on-year, ahead of market expectations
The indicator recovered from its drops in October and November.

The Monthly Indicator of Economic Activity  (IMACEC) for December showed 12-monthly growth of 1.1%, according to the Central Bank of Chile. For the second consecutive month, it performed ahead of market expectations, after dropping in October (-3.4%) and November (-3.3%).

The IMACEC for the mining industry was up by 3.7% in December, while the non-mining IMACEC increased by 0.8%. The latter is explained by the performance of manufacturing (up by 4.2%) and an improvement in the retail sector (0.6%) and some services.

“In December, there were fewer acts of violence than in October and November. This meant that thousands of MSMEs were able to reopen their doors and operate, permitting a gradual reactivation of the economy. As a government, we want to recognize them especially,” said acting Finance Minister, Francisco Moreno.

“This 1.1% increase gives us hope in the hard daily task of recovering economic growth for all Chileans. The December IMACEC shows that our economy is particularly resilient. We will continue working to resume growth and advance in implementing the government’s social agenda,” added Moreno.

The December IMACEC suggests that GDP growth in 2019 was 1.2%, which is also above market forecasts, which pointed to 1%. The official GDP figure will be announced with the publication of the National Accounts on March 18.

“Before the events of October 18, growth forecasts were around 2.5%; there is a significant impact in terms of lower economic growth about which we need to reflect,” said Moreno.