Chile's economy dips again in December, hit by fall in mining, services

SANTIAGO: Chile's economic activity fell 0.4% in December from the same month a year ago, the central bank said on Monday, as authorities in the world's top copper producer ratcheted up health restrictions to stave off new contagions around the end-of-year holidays.

The bank's IMACEC economic activity index encompasses about 90% of the economy tallied in gross domestic product figures.

Holiday commerce remained a bright spot despite the growing restrictions, the bank said, but a fall in service activities and the critical mining sector dragged the economy down.

Chile statistics agency INE last week said copper production - the country's economic motor - had plunged 8.7% in December. Copper output had previously been little affected as mines continued to operate with increased precautions throughout the pandemic.

The IMACEC index registered an overall 6% drop in 2020, the bank said, the consequence of months of lockdowns that hobbled the South American nation's economy. The pandemic arrived in Chile in March and reached its peak in May and June.

Cases of coronavirus, however, have begun creeping up since late November, prompting authorities to once again implement restrictions and weekend lockdowns in the capital Santiago in December and January.