GDP: Chile’s economy falls 9.1% and enters recession despite mitigating some blows | Economy

The Chile’s Gross Domestic Product (GDP) fell 9.1% in the third quarter of 2020.

The above, in relation to the same period of 2019.

The figure was in line with expectations due to the pandemic, the Central Bank (BC) reported on Wednesday in its National Accounts report, highlighting that the confinement measures and the impact on productive activity were part of the causes.

The result nevertheless represents an improvement compared to the decrease in the previous quarter, which had been 14,5%.

At that time it was the worst record since the economic crisis of 1982 (when the GDP was -13.6%) and the official data dating from 1986.

After two quarterly contractions in a row, our country entered a recession; and the BC foresees that the economy will contract in 2020 between 4.5% and 5.5%; and for 2021 it foresees a growth of between 4% and 5%.

In its report, the BC noted that the third quarter result “was affected by the health emergency associated with covid-19, which continued to influence the mobility of people and the normal functioning of productive establishments ”.

The most affected activities were personal services, construction, transportation, restaurants and hotels; and business services.

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