World Economy

Chile Growth Above Forecast

Chile Growth Above ForecastChile Growth Above Forecast

Chile’s economy grew more than analysts had forecast in the first quarter as investment picked up after declining for much of the previous two years and exports of goods and services rose at the fastest pace since 2013, Bloomberg reported. Gross domestic product grew 2% from the year earlier, the central bank reported, compared with the 1.8% median estimate of 17 economists surveyed by Bloomberg. Expansion accelerated from 1.3% in the previous three months. Quarter on quarter growth was also 1.3%, the fastest pace since the third quarter of 2013. The central bank left its key interest rate unchanged at 3.5% yesterday, highlighting stronger-than-expected growth, while also stressing that business sentiment remains weak and that the labor market has deteriorated. With investment coming off a very low base and unemployment rising, growth is unlikely to continue gaining pace, said the central bank economist Nathan Pincheira.