Chile's GDP up 0.7% in Q3 from previous quarter

Nov 18 (Reuters) - Chile's gross domestic product (GDP) grew 0.7% in the third quarter of 2024 from the previous three-month period, slightly surpassing market expectations of a 0.6% increase, according to data released by the central bank on Monday.

The growth contrasted with a 0.7% contraction in the second quarter but is below the 2.0% expansion in the first quarter.

The Andean nation's economy expanded 2.3% in the third quarter from a year earlier, accelerating from a 1.6% year-on-year increase in the second quarter. Economists polled by Reuters were expecting an annual growth rate of 2.2% in the July-August period.

According to the central bank, the quarterly expansion in economic activity was influenced by manufacturing and services activity, while annual GDP growth was driven by the personal services, mining, transportation, manufacturing and commerce sectors.

Chile's economy has been regaining ground after facing a sharp economic downturn in 2023, which followed a rapid post-pandemic recovery that generated inflationary pressures and led the central bank to hike rates.

Chile's monetary authority is expected to lower its benchmark interest rate by 25 basis points to 5.0% at its monetary policy meeting in December, a poll of traders showed, after it cut borrowing costs last month by the same amount to 5.25%. (Reporting by Fabian Andres Cambero and Luana Maria Benedito. Editing by Mark Potter)