Economy

Chilean economy grows 10.2% in 2021, says Central Bank

Measures to support families and partial withdrawals from pension funds helped the country to recover faster from the impacts of the pandemic.

Santiago, Chile, 2013. Photo: Daniel Garcia Neto/ Creative Commons (licensed under CC BY-NC 2.0).
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The Chilean economy recorded growth of 10.2% in 2021, in a rapid recovery from the coronavirus pandemic, the Central Bank said on Tuesday.

The Monthly Indicator of Economic Activity (Imacec), representing around 90% of the South American country’s Gross Domestic Product (GDP), recorded an annual increase of 10.1% in December, supported by a good performance in services and commerce.

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“All Imacec components grew compared to the same period of the previous year, with emphasis on the contribution of service activities and, to a lesser extent, commerce,” the bank said in a note.

“This result was explained, in part, by the greater opening of the economy, by measures to support families, and by partial withdrawals from pension funds,” he added.

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The rapid recovery of the local economy generated inflationary pressures, leading the central bank to accelerate the withdrawal of the monetary impulse that it applied since the arrival of the pandemic in March 2020.

In seasonally adjusted terms compared to November, activity dropped by 0.4%.

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