Chile Growth Disappoints

Chile has returned disappointing growth figures for July, prompting the finance minister, Andrés Velasco, to say that the government is “unsatisfied” with the month’s 4.2% expansion of the economy and will look to stimulate “more dynamic growth” moving forward. Velasco stressed that growth was a “priority” for the government. The July growth rate, as measured by Imacec, the monthly economic activity index, is the slowest pace in three months and reflects the impact of high energy prices on consumer spending and investment. Meantime, despite recording a nine-year high for the month, inflation in August slowed to 0.3% from 0.5% in July, meaning annual inflation remains at 3.8%. The Central Bank is expected to maintain the benchmark interest rate at 5.25% at the next review.