Saudi Arabia to visit Brazil and Chile as seeks to diversify mining
The diversification strategy includes plans to expand into international mining to secure access to minerals including copper, cobalt and nickel, as well as lithium.
Chile’s economic activity unexpectedly grew on a jump in mining as the central bank prepares to deliver another aggressive interest rate increase later this week.
The Imacec index, a proxy for gross domestic product, rose 1.6% in March from the month prior, more than all estimates in a Bloomberg survey that had a -0.2% median forecast. From a year ago, activity increased 7.2%, the central bank reported on Monday.
The stronger-than-expected increase comes as Chile’s economy cools following last year’s record growth of 11.7%. The central bank is expected to deliver its seventh straight rate hike on Thursday as consumer price increases barrel toward double-digits. Financial markets are also jittery as the Constitutional Convention votes on crucial articles for the draft charter.
Mining activity rose 6.6% during the month, according to the central bank. Industry gained 3.5% while services increased 0.7%.
In April, Chile’s lower house of congress rejected dueling proposals for another round of early pension fund withdrawals which helped propel growth in 2021. Gross domestic product will grow 1%-2% this year and may shrink in 2023, according to central bank estimates published on March 30.
(By Matthew Malinowski)
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