Chile: Aggregate activity grew 0.8% YoY in June, significantly below expectations

Summary

Once again aggregate activity figures disappointed both our and market expectation, this time with a sizable negative surprise (BBVAe: 1.9% a/a; Consensus: 2.0% a/a). The print was mainly explained by negative contributions from manufacture production, whole sales commerce, and car sales. With this figure, aggregate activity grew 1.8% in 2Q14 and accumulates a 2.2% YoY growth in 2014. For July's print we anticipate some persistence in economic activity weakness, which will trigger more aggressive countercyclical policy reactions, both in monetary and fiscal front.

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