Chile’s Economy Unexpectedly Expands for First Time Since January

  • Activity gains 0.5% on month in June, falls 1% on year
  • Central bank cut key rate by 100 basis points on Friday
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Chile’s economic activity expanded for the first time since January as a surge in mining softened the blow from declines across other sectors, corroborating the central bank’s plans to continue interest rate cuts.

The Imacec index, a proxy for gross domestic product, rose 0.5% in June from the previous month, compared to the -0.1% median estimate in a Bloomberg survey. From a year prior, it fell 1%, the central bank reported on Tuesday.