Chile's Economic Activity Disappoints, Supporting Rate Cuts.

Chile's economic activity unexpectedly contracted in August, primarily due to a decline in services, supporting the central bank's plan for further interest rate cuts. The Imacec index, a measure of gross domestic product, fell 0.2% on the month, in line with analysts' estimates. The central bank has already cut interest rates nine times in the past year, and with GDP contraction in the second quarter, rising unemployment, and low business confidence, more rate cuts are expected. However, there were some positive signs, with commerce and mining activity showing growth. The government still predicts a 2.6% expansion in the economy for 2024. [Extracted from the article]