Investment “fell by 8.7%, driven by its two components; gross fixed capital formation fell by 4.1%, mainly due to lower investment in transport vehicles and electrical and electronic equipment,” the Bank said.

This Monday, the Central Bank of Chile published the National Accounts report for the second quarter of 2024.

The document detailed that economic activity showed an annual growth of 1.6% in the second quarter of 2024; and that from the perspective of expenditure, the growth of the gross domestic product (GDP) was supported by a higher level of exports.

"Domestic demand, on the other hand, fell by 1.4% as a result of lower investment," the bank said.

From the origin perspective, GDP was driven mainly by mining, power generation, trade and transportation activities.

In seasonally adjusted terms, GDP registered a slowdown of 0.6% compared to the previous quarter, reflecting declines in mining, business services and manufacturing.

In the report, the Central Bank indicated that from an expenditure perspective, GDP growth was supported by a higher level of exports.

HOUSEHOLD CONSUMPTION

Domestic demand, on the other hand, decreased.

Household consumption recorded an annual variation of 0.5%, led by spending on durable goods, particularly technological products and automobiles.

“To a lesser extent, consumption of services also contributed to the result, with spending on transport and cultural and leisure activities standing out, an effect offset by lower spending on tourism. Meanwhile, non-durable goods fell, with lower consumption of food, beverages and tobacco being recorded,” the report said.

Government consumption increased 1.6% in the period, in line with an increase in health services, which was partially offset by lower education services.

Investment, meanwhile, “fell by 8.7%, dragged down by its two components; gross fixed capital formation (GFCF) fell by 4.1%, mainly due to lower investment in transport vehicles and electrical and electronic equipment,” the Bank said.

FOREIGN TRADE

Finally, the National Accounts report noted that foreign trade showed mixed results; exports of goods and services grew by 7.3% while imports fell by 2.2%.

Exports were led by shipments of mining and industrial products. This was accompanied by an increase in exports of services.

Imports of goods were marked by lower imports of industrial products. However, imports of services increased.