Economics
Chile Economy on Brink of Recession Amid Rampant Inflation
- Second quarter GDP unchanged on quarter, grew 5.4% on year
- Highest inflation and key rate in decades to weigh on growth
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Chile’s economy is teetering on the brink of recession after unexpectedly flatlining in the second quarter amid soaring inflation and heightened political uncertainty over a new constitution.
Gross domestic product was unchanged in the April-June period from the previous three months, worse than all forecasts in a Bloomberg survey of analysts that had a 0.3% median estimate. It shrank in the first quarter. From a year prior, the economy expanded 5.4%, the central bank reported on Thursday.