Chile finmin says slow September a temporary setback

The Chilean economy only expanded 2.3% in September in a year when annual growth is expected to be around 4%.

"We expect better figures in the coming months," said finance minister Felipe Larraín (pictured) on Twitter.

According to the preliminary figures published by the central bank in its monthly Imacec economic activity indicator report, mining activity contracted 2% year-on-year, while non-mining activity was up 2.5%. In seasonally-adjusted terms, economic activity increased 0.4% compared to August.

Calling it a temporary setback, Larraín was quoted by local press as blaming the fact that this year the month of September had two business days less due to the national day celebrations.

Larraín reiterated the government's expectation that GDP will expand 4.1% in 2018.

The minister had said at the beginning of October that the Chilean economy's recovery was stronger than previously expected and prompted the finance ministry to upgrade the year-end growth forecast to 4.1% from its July estimate of 3.8%.

While noting that growth had been significantly lower in Q3 than in the two first quarters of the year, Santander Chile and Oxford Economics said they expect the Imacec figures for October to show a better result and provided annual GDP growth forecasts of 4% and 4.1%, respectively.

The central bank will release the preliminary Q3 GDP figures on November 19.