Chile’s economic activity falls less than expected in December

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People shop in a store inside of a mall at Vina del Mar

SANTIAGO (Reuters) – Chile’s economy performed better than expected in December but still ended 2022 in negative territory as the world’s largest copper producer faces a slowdown after a rapid post-pandemic recovery, central bank data showed on Wednesday.

The country’s key IMACEC economic activity index, a close proxy of gross domestic product (GDP), fell 1.0% in December from the same month last year, Chile’s central bank said – a smaller drop than the 2.5% one forecast by economists polled by Reuters.

The negative year-over-year figure came on the back of lower commerce and manufacturing activity results, although they were partially offset by a rise in service activities, according to the central bank.

That represented the fourth consecutive drop for the index, which accounts for nearly 90% of the South American country’s GDP, leading it to post a 1% drop in the full year of 2022.

When compared with the previous month, however, the IMACEC index rose 0.4%, the central bank added.

(Reporting by Fabian Andres Cambero and Gabriel Araujo; Editing by Steven Grattan)

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