(Bloomberg) -- Chile's economic activity unexpectedly grew on a jump in mining as the central bank prepares to deliver another aggressive interest rate increase later this week.
The Imacec index, a proxy for gross domestic product, rose 1.6% in March from the month prior, more than all estimates in a Bloomberg survey that had a -0.2% median forecast. From a year ago, activity increased 7.2%, the central bank reported on Monday.
The stronger-than-expected increase comes as Chile's economy cools following last year's record growth of 11.7%. The central bank is expected to deliver its seventh straight rate hike on Thursday as consumer price increases barrel toward double-digits. Financial markets are also jittery as the Constitutional Convention votes on crucial articles for the draft charter.
Read more: Just 46 Days in Office, Chile's Leftist Leader Runs Into Trouble
Mining activity rose 6.6% during the month, according to the central bank. Industry gained 3.5% while services increased 0.7%.
In April, Chile's lower house of congress rejected dueling proposals for another round of early pension fund withdrawals which helped propel growth in 2021. Gross domestic product will grow 1%-2% this year and may shrink in 2023, according to central bank estimates published on March 30.
©2022 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
