Chile's economy declined in May for the seventh straight month, shrinking by 4.4 percent from a year ago, an index recording Chile's monthly economic activity showed Monday.
Falls in industrial production and trade were among the top culprits for May's GDP deterioration, the central bank said in a statement. Chile's industrial output declined 10.5 percent in May compared to the same month last year, according to figures released by the Chilean government last week. Furthermore, steel output in Chile for the first five months of the year was down 44.6 percent, to 404,500 mt, according to data from the Latin American Iron and Steel Institute (ILAFA) released last month.
However, the Chilean government considers the May GDP figures to be an indicator of economic stabilization, as the pace of the decline remained stable. "If we look at immediately preceding months, economic activity is at practically identical levels, which shows that the fall seen at the end of last year and beginning of this year has stopped for several months," said Andres Velasco, Minister of Finance.
During the first quarter, Chile's GDP fell 2.1 percent, though the central bank's 2009 GDP forecast ranges between a 0.75 percent contraction and a 0.25 percent expansion as economic activity is projected to pick up slightly in the second half of the year.