Economic activity expanded 3.7% year-on-year in June, a deterioration from the 6.4% growth in May. June results were the worst since February 2021. The marked weakening in June was partly due to a sharper drop in the mining sector. In addition, growth in the non-extractive sector slowed down.
On a monthly basis, economic activity fell a seasonally adjusted 0.2% in June, matching a fall in May. Meanwhile, the trend was downward: the average annual growth of economic activity in June was 10.3% compared to 11.7% in May.
Data for the second quarter as a whole suggests that the economy showed moderate growth compared to the previous quarter. However, economic activity is expected to slow down again in the third and fourth quarters due to higher interest rates, double-digit inflation and weak business sentiment.
FocusEconomics experts predict GDP growth of 2.0% in 2022, which has not changed compared to last month’s forecast. In 2023, GDP growth is expected to be 0.5%.