Chile’s GDP expands 3.3% in 3Q, but prospects for 4Q are discouraging

Chile’s gross domestic product grew 3.3 percent in the third quarter of 2019 compared with a year earlier, the central bank said on Monday. The market had predicted relatively strong growth during the July through September period, citing improving prospects for the country’s all-important mining industry.

Chile is the world’s top copper producer, and a leading exporter of fresh fruit, wines and farmed salmon.

Protests that began early in October in Chile have since dampened prospects for the fourth quarter, prompting the government to slash estimates for growth. Unemployment could jump as much as 3%, the administration has said.

Riots have rocked Santiago for a month in the biggest crisis to hit Chile since its return to democracy in 1990. Weeks of unrest have stifled the economy, prompting increasingly grim forecasts for growth and unemployment.–MercoPress