Chile’s economy off to a bad start in 2008, growing only 3.4% in January

To see international photos, click here

SANTIAGO. -  The country’s economic activity has started off 2008 with results far below market expectations.

The Central Bank has reported that the Monthly Economic Activity Indicator (Imacec) increased by only 3.4% in January when compared to the same month during the previous year.

The market had been projecting economic growth at between 4.2% and 4.5% for the first month of the year, which was supposed to have drawn support from internal consumption, despite weak performance in the industrial and mining sectors.

The monthly figure influenced a drop in the added value of electricity generation and mining activities. 

For 2008, the Central Bank has forecasted an increase in Gross Domestic Product (GDP) toward the lower end of a range between 4.5% and 5.5%.

The Imacec measures monthly changes in economic activity and gives an estimate based on production indicators of various activities comprising GDP for the current year based on national data (2003).