LatinNews Daily - 02 July 2024

*Chile’s central bank (BCCh) has reported that its monthly index of economic activity (Imacec) increased by 1.1% in May 2024 compared to the same month in 2023. The growth was mainly driven by the mining sector, which saw a significant increase of 7.6%, and to a lesser extent, services (+0.8%) and other goods (+3.7%). However, in seasonally adjusted terms, economic activity contracted by 0.4% from April 2024, with notable declines in the industrial manufacturing sector (-2.3%) and services (-0.2%). The non-mining Imacec grew by 0.2% annually but fell by 0.5% month-on-month in seasonally adjusted terms. The mining sector’s growth was supported by increased production of copper and lithium, while the industrial sector faced challenges, with reduced production in the chemical, petroleum, rubber, and plastic industries. The commercial sector experienced a 2.0% annual decline, impacted by lower sales in automotive and wholesale trade. The BCCh highlighted that these figures reflect the ongoing volatility and challenges within different economic sectors.