Fiscal Spending Cushions Chile’s First Contraction in 6 Yrs
- GDP shrank 0.4% in second quarter from previous three months
- Contraction was less than the 0.7% forecast by economists
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A jump in fiscal spending cushioned Chile’s first economic contraction in more than six years in the second quarter as mining output declines and unemployment begins to rise.
Gross domestic product fell 0.4 percent from the previous three months, the statistics agency reported on its website. The median forecast of 10 analysts surveyed by Bloomberg was for a decline of 0.7 percent. The economy expanded 1.5 percent from the year earlier, down from a revised 2.2 percent in the first three months of the year.