Chile’s GDP jumps 17.2% in third quarter as economy warms

Band Fabian Cambero

SANTIAGO, November 18 (Reuters)The Chilean economy grew 17.2% in the third quarter of 2021, the central bank said on Thursday, aided by a rapid vaccination campaign, weak compared to the previous year and public spending that supported activity in the Andean nation rich in copper.

The economy during the July-September period grew 4.9% from the previous quarter, the bank added. The controversial pension withdrawals have also helped pump more money into the economy and boost consumer spending.

Chilean President Sebastián Piñera said last week that the economy is expected to grow by more than 11% this year amid a rapid recovery from the coronavirus pandemic, higher than the previous government’s forecast but in line with the central bank.

The economic activity of the world’s largest copper producer has been helped by the high prices of the red metal, but also by government aid to households and the partial withdrawal of retirement savings approved to alleviate the crisis.

Chile, like other neighboring countries in the region, has raised interest rates this year amid concerns about the overheating economy and rising inflation.

(Reporting by Fabian Cambero; Writing by Adam Jourdan Editing by Raissa Kasolowsky)

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