Chile's Economy Grows More Than Expected in First Quarter

• Chile's gross domestic product grew 0.7% in the first quarter of 2025 relative to the previous three-month period, central bank data showed on Monday, May 19, 2025. The result came in slightly above the 0.5% expansion expected by economists in a Reuters poll.
• The Andean nation's economy was up 2.3% in the first quarter from a year earlier, the central bank added, also above the 2.0% forecast in the Reuters poll.
• Trade, manufacturing, personal services, and agricultural activity were the main contributors to GDP growth, while mining, financial services and construction registered declines.
• "Looking ahead, we expect growth to slow gradually over the coming quarters as the impact of temporary drivers fades and external conditions become less favourable," Andres Abadia, chief Latin America economist at Pantheon Macroeconomics, said in a note to clients. The slowdown should not be a major worry, as leading indicators suggest that activity in Chile will remain relatively strong, Abadia added.
• The central bank also released on Monday a poll of analysts showing that they expect interest rates to be held at 5% at the bank's next monetary policy meeting in June.

(Source: Reuters)