Economic activity increased 3.7% yoy in June, a deterioration from the 6.4% increase in May. The June result was the worst reading since February 2021. The notable weakening in June was partly due to a sharper decline in the mining sector. In addition, growth in the non-mining sector weakened.
On a monthly basis, economic activity fell 0.2% seasonally adjusted in June, in line with the May decline. Meanwhile, the trend has intensified, with the average annual growth of economic activity standing at 10.3% in June, down from 11.7% in May.
Data for the second quarter as a whole suggests that the economy experienced slight quarter-over-quarter expansion over the period. However, economic activity is expected to decline in the third and fourth quarters due to much higher interest rates, double-digit inflation and weak corporate sentiment.
FocusEconomics speakers see GDP growing by 2.0% in 2022, which is unchanged from last month’s forecast. In 2023, GDP grows by 0.5%.