Chile’s Economy Unexpectedly Breaks Record Again

Chile’s economy has broken its growth record for a second month in a row, in a sign that one of Latin America’s most-developed countries is witnessing a major bounce back from the turmoil of the global pandemic.

According to the country’s Central Bank, Chile’s economy saw 20.1% more growth in June 2021 than in June the previous year — the highest rate of growth since 1986, when current ‘Imacec’ record keeping methods began. 

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That is significantly higher than the 18% growth previously predicted for June, and 2.1% higher than the year-on-year monthly record set in May,  according to local media outlet Emol.

“To whom should this growth be credited? To the workers, the SMEs, to the entrepreneurs, to all Chileans,” said Chilean President  Sebastian Piñera in welcoming the news, according to El Economista.

Chile’s economy resurges after pandemic turmoil

While Chile’s economy has been one of the fastest growing in Latin America in recent decades, it was also one of the hardest hit in 2020, after the coronavirus pandemic swept the globe in the early months of the year. 

Chile has long been one of the most highly-developed economies in Latin America, rated as the 19th freest economy in the world and 2nd in the region by the Heritage Foundation in 2021.

According to the latest Imacec assessment, every growth marker saw improvement in June, including a 21.8% growth in the construction industry, an 18.8% growth in manufacturing, and a 45.4% rise in commerce.

While Chile is famed for its extractive industries, including production of copper, as well as gems and precious metals, it is also a major commercial hub in the region, known as a global beacon of free trade and maintaining one of the most extensive portfolios of free trade agreements in the region.

Vaccine rollout bolsters Chile’s economy

Chile has overseen one of the fastest vaccination rollouts in the world, with more than 78% of the target population fully vaccinated by late July. 

That has not left the country out of the woods, with capital city Santiago still facing lockdown measures in June, even in the face of impressive vaccination rates. 

However, the success of the vaccination programme does appear to correlate with Chile’s economy showing strong recovery signs, with consecutive months of economic recovery now recorded.

The news will be welcomed by investors, with all sectors of Chile’s economy reactivating and showing positive signs for the future.

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