This is a surprising result that breaks even the most optimistic expectations that projected growth of between 2.7% and 4.4%.
The Central Bank of Chile today released data corresponding to the Monthly Index of Economic Activity (Imacec) for December 2024. According to the data, the index grew 6.6% compared to the same month of the previous year.
The seasonally adjusted series of the Imacec rose 0.9% compared to November and grew 4.3% in twelve months. It should be noted that the month registered two more business days than December 2023.
This is a surprising result that breaks even the most optimistic expectations. In the latest Economic Expectations Survey (EEE) of the issuing body, an Imacec of 2.7% was projected. On the other hand, Clapes UC pointed to a figure of around 4.4%, after the positive sectoral data from the INE.
All components of the indicator performed well in the last month of last year. Within this, the variation of “other goods, particularly fruit growing and mining” stands out.
“Meanwhile, the increase in the seasonally adjusted Imacec was driven by mining and trade. The non-mining Imacec showed an annual growth of 5.4%, while in seasonally adjusted terms it grew 0.4% compared to the previous month,” the Central Bank said in a statement.
Imacec December 2024: Production of goods
Regarding the production of goods, this component had an annual increase of 13.3%.
The result was mainly explained by the rest of the goods - which considers agricultural, forestry, fishing, EGA and waste management, and construction activities - and mining.
Regarding the rest of the goods, the performance of the fruit sector and especially cherry production stood out. On the other hand, the extraction of copper and lithium boosted mining.
“Industry also contributed to the growth of the group, reflecting a higher production of food and fuel. In seasonally adjusted terms, the production of goods showed an increase of 2.3% compared to the previous month, a result that was explained by the performance of the mining industry,” the Central Bank said.
Trade
Trade, for its part, increased by 10.6%, with all its components varying positively.
Within the sector, they highlighted the contribution of wholesale trade, driven by food sales and in particular by fruit exporters.
Retail trade also stands out, with “sales made in large stores, specialized clothing stores and through online sales platforms. The automotive trade recorded higher vehicle sales.”
"Seasonally adjusted figures showed a growth of 2.7% compared to the previous month, influenced by wholesale and automotive trade," the issuing body said.
Services
Finally, there are services, which showed a 2.0% year-on-year increase.
The result was mainly explained by transport services associated with foreign trade, although business services also contributed to the growth.
Seasonally adjusted figures were unchanged from November.
The 2024 GDP estimate, based on figures from the National Accounts, will be released on Tuesday, March 18, through the Central Bank's channels. The figure will include revisions to the first, second and third quarters.
