August 18, 20 - 4:17 pm - Reuters

Chile’s GDP fell 14.1% in the second quarter

Chile’s Gross Domestic Product (GDP) fell 14.1% year-on-year in the second quarter hit by restrictions to face the coronavirus pandemic, according to data released on Tuesday by the Central Bank.

Since the beginning of March, the health authorities have imposed various measures, including strict quarantines, to contain the spread of Covid-19, which already totals about 390,000 infections and more than 10,000 deaths in the country.

This result was affected by the health emergency associated with Covid-19, which influenced the mobility of people and the normal operation of productive establishments

ChileAN Central Bank’s statement

In contrast, mining activity, vital to Chile, grew 1.6%.

The agency explained that from a spending perspective, the effects of the restrictions were reflected in lower household consumption and investment. With this, domestic demand fell 19.1% in the three months to June and household consumption showed a decrease of 22.4%.