Expansion: Chile’s Gross Domestic Product Up 17.2% in Third Quarter

Chile’s Gross Domestic Product (GDP) climbed 17.2% in the third quarter due to a low comparison base, greater openness of the economy and measures to support households and companies, in addition to partial withdrawals of pension funds, according to data released Thursday by the Central Bank.
Seasonally adjusted GDP between July and September rose by 4.9%.
“The expansion of economic activity was led by services, where a generalized increase in all its components was observed, highlighting personal and business services,” the agency said.
Trade and construction – two other sectors hit hard last year by restrictions to combat the coronavirus pandemic – also contributed to the upside.
“In contrast, mining and forestry farming were the only ones that registered falls during the quarter,” he said. The quarter had zero calendar effect, recording the same number of business days, the bank said.
From an expenditure perspective, GDP growth was driven by higher domestic demand, particularly household consumption.
“Greater mobility of people, partial withdrawals of pension savings and fiscal transfers continued to stimulate household consumption, with higher spending on services and non-durable goods,” the Bank said.
The Central Bank began an accelerated withdrawal of the monetary stimulus that it applied since the arrival of the pandemic in March 2020, given the risk of overheating activity and pressure on prices.
The agency has warned that the approval of new withdrawals of provisional savings could deepen the risks.

Original source in Spanish