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).
Ler em português

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.

READ ALSO: Chile’s President Gabriel Boric designates a centrist cabinet for market relief

“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.

READ ALSO: Chilean fintech Xepelin raises $80 million and launches credit service for SMBs in Mexico

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%.

Get the best insights about Latin America market in your inbox