The Central Bank published the Monthly Index of Economic Activity (Imacec) corresponding to October, which indicates a fall of 1.2% in 12 months for all sectors and of slightly more than 1.8% for non-mining sectors. Minister Marcel stressed that the figures were above market expectations and mentioned that in the first months of next year “the economy will recover.”
The Minister of Economy, Mario Marcel, referred positively to the results of the Monthly Index of Economic Activity (Imacec) for October. He stressed that the results were above market expectations and that the Chilean economy “is becoming more resilient.”
This Thursday, the Banco Central published the Imacec corresponding to October in the midst of the complex economic scenario facing Chile. The figures indicated a drop of 1.2% in 12 months for all sectors and something higher than 1,8% for non-mining sectors.
This negative variation was influenced by the strong contraction of trade in a -10,3% and the manufacturing industry in a -5%.
Regarding the results, the Minister of Economy, Mario Marcel emphasized that the figures were above the expectations that the market had, due to the fact that a drop was expected between 1,5% y 2,5%.
“The Chilean economy is becoming more resilientin a negative environment, compared to what many analysts have been expecting during this time”, he mentioned.
And he added that the activity showed a growth of 0,5% compared to the month of September.
Marcel also referred to the global economic context and pointed out that there is a less favorable world economy, so “it is good that the Chilean economy, the adjustment it is making, is doing so gradually but without losing effectiveness.”
And he emphasized the relevance of reducing inflation: “where it is important the effectiveness is in lowering inflation. In the last two months we have had falls in inflation compared to the peak that was reached in August and it means that the adjustment in spending is being to lower inflation, but it is not dragging down all sectors of activity”.
Finally, the portfolio holder mentioned that “in the first months of next year the economy will begin to recover, while inflation will continue to drop.”
Some economic specialists are not so positive
However, not everyone is so positive about the decline that Imacec showed.
For his part, the chief economist of Fynsa, Nathan Pincheirabelieves that the figures were leveraged by mining activity, which advanced 6.4%.
“This growth was influenced by the mining Imacec, while the rest of the economy, mainly the trade and services area, experienced a significant drop“, he declared.
While the Econsult economist, Arturo Claro, stressed that after several months as the “engine” of growth, the services sector falls (0.6%) and it is what contributes the most to the drop.
“The services sector, which has shown some resilience in the last two months and has managed to keep the imacec afloat, was the one that fell the most,” he mentioned.