Chilean economy sluggish in March: Imacec grew only 0.7%

SANTIAGO.- The Chilean economy grew a mere 0.7% during March, which is the lowest increase reported in at least four years and far below market estimates.

The figure reflects the negative effects of two less workdays in March (compared to the same month in 2007) on Industry and Trade activities as well as drops in mining activity and the added value of electric generation.

The market expectations were for the economy to grow 1.6% during the third month of this year.

With the new figure, the Central Bank has indicated that the Imacec (Index of Economic Activity) has now fallen below the 6.9% increase reported in March of 2007 and the 5.6% jump reported in February of this year.  

For 2008, the Central Bank has forecasted an expansion of the Gross Domestic Product (GDP) somewhere between 4.5 and 5.5%, tending more towards the lower end of the spectrum.  Last year, the Chilean economy grew by 5.1%.