LatinNews Daily - 19 August 2020

* Chile’s central bank (BCCh) has revealed the country suffered a historic 14.1% GDP contraction in the second quarter of 2020 compared with the same quarter in 2019, which it attributed to the impact of the coronavirus (Covid-19) pandemic. In a national accounts report, the BCCh indicated falls across the board of economic activities – with personal and business services, commercial sector, transport, construction, manufacturing, and restaurants and hotels particularly affected – however, the mining industry registered 1.6% growth. Although the mining industry’s gains were down on the 5.3% recorded in Q1, it was buoyed by an increase in copper extraction, and to a lesser extent in iron extraction, despite Covid-19 mitigation measures leading to reductions in the numbers of workers permitted on site. A further BCCh report on the country’s balance of payments noted an increase in the value of copper exports in line with a global rise in the price of the metal. This export boost helped Chile register a public accounts surplus of US$1.15bn over the second quarter of 2020, equivalent to 2.1% GDP. Chile recorded a goods trade surplus for the quarter of US$4.9bn, which far exceeds the US$880m surplus registered over the same period last year. The increase reflects a significantly smaller yearly drop in exports compared with imports. 

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