translated from Spanish: Chile posts economic contraction during January

Chile.-Chile’s economy recorded a decrease in production during the month of January compared to the same month of 2020, of 3.1%, a contraction awarded to the Covid-19 pandemic that affected the South American country. The result of the Monthly Economic Activity Indicator (Imacec), which brings together 91% of gross domestic product (GDP) goods and services, “was explained by the decline in services activities and the production of goods, an effect that was partially offset by the dynamism of trade,” the body explained.
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The destationalized series increased 1.3% from the previous month and decreased by 0.8% in twelve months,” the bank added.

Read more: They recognize nine Coparmex companies for having the best ethical standards in the world After eight months of falls, November and December 2020 recorded timid year-on-year growth (0.3%), but the second wave affected January activity, when nearly 20% of the population was in total quarantine and most of the capital was locked up on weekends , despite the summer holidays.

Finance Minister Rodrigo Cerda said on Twitter that the January fall “realizes the country’s enormous challenges by 2021” and asked to work “together and relentlessly.” I am convinced that the advancement of vaccination, the gradual reopening of economic activity and the boost of the labour market and public and private investment will enable us to accelerate our economic revival,” he added. The year-on-year decline of 2.9% in goods production was the product of construction collapse (-3.4%) and, to a lesser extent by mining and manufacturing, -1.5% and -1.8%, respectively, the issuer indicated. Year-on-year growth of 8.8% of commercial activity was driven by retail and wholesale sales, while services fell 6.3% compared to January 2020 due to transport, restaurants, hotels and cultural and leisure activities, among others, the bank added. With more than 825,000 contagions and nearly 20,500 dead, the second wave had signaled stabilizing in mid-February and most restrictions were lifted in the south and in Santiago, but in recent days the pandemic seems to take strength again, with more than 4,000 new infected a day. Read more: Chile vaccinates 16% of its total population in just twenty daysWhile, Chile continues to carry out a successful vaccination process and, with more than 3.2 million people who have received at least one dose, is the fastest advancing country in inoculation in Latin America.The bank estimates that by 2020 the local economy fell between 5.7% and 6.2% by pandemic , while forecasting a recovery for this year, from 5.5% to 6.5%.

Original source in Spanish