Chilean economy could have grown about 5 percent in April, says Finance Minister

The head of public finances stressed that the economy begins to tone after the poor performance recorded in 2017.

The Chilean economy could have grown about 5.0 percent in April, above the surprising expansion of activity in March, thanks to three more working days than in the same month last year, Finance Minister Felipe Larraín told a local newspaper on Sunday.

The head of public finances stressed that the economy begins to tone after the poor performance recorded in 2017, but admitted that the monthly growth indicator has also been favored by the low base of comparison after an extensive strike at the Escondida copper mine last year.

"There is a base effect of comparison that has to do with the effect of the Escondida mine, but in April we will have better figures than in March," Larraín told El Mercurio newspaper.

The economy surprised in March with a growth of 4.6 percent year on year, its best level in five years, due to the strong rebound of mining and a gradual recovery of consumption, which strengthens a greater traction of the activity in the short term.

"The figure for April can be even over 5.0 percent, and that has to do with there being three more working days than in April 2017. Meanwhile, the base effect begins to dissipate (...) here we are starting to see the best times, "said Larraín.

The minister's forecasts coincide with the projections of analysts who have estimated that the economy expanded between 5.0 and 6.0 percent in the fourth month of the year.

"April would be the highest year-on-year growth of the year, and then be followed by volatile records," said a recent report by BBVA Chile bank.

The indicator of the performance of the economy in April will be disclosed next month by the Central Bank.

(With inputs from Reuters)