Chile's Q4 growth detail was arguably slightly better than the headline number which showed that the economy actually bottomed in Q3 (1.0% yoy) and recovered to growth of 1.8% yoy.
The key reason for this is positive - even if mild - growth in investment and exports. In fact, investment demand has shown growth for the first time in six quarters.
However, on the negative side, the deceleration in consumption growth picked up pace and the bulk of the growth essentially resulted from signficant counter-cyclical fiscal spending.
Societe Generale says....
As a result, the Q4 GDP release does little to alter the estimated growth trajectory in the near term evenif the growth composition appears slightly different.
