Key facts
- Chile's economic activity declined 1.2% year-on-year in April.
- Chile has experienced four consecutive months of economic contraction.
- Chile's mining activity fell 11.8% in April.
- Argentina's economic activity grew 5.5% year-on-year in March.
- Croatia's GDP growth slowed to 2.2% year-on-year in Q1.
- Turkey's Q1 GDP grew 2.5% year-on-year.
- Israel's industrial production decreased 1.1% in Q1.
- Canada's Q1 labour productivity fell 0.5%.
- Costa Rica's fiscal deficit narrowed to 3.4% of GDP as of March.
- Costa Rica's debt-to-GDP ratio was 59.2% at the end of Q1.
Chile's economic activity experienced a year-on-year decline of 1.2% in April, marking the fourth consecutive month of contraction. This downturn was largely attributed to a significant 11.8% decrease in mining activity. However, the non-mining sector demonstrated resilience, growing by 0.4%. This performance is expected to prompt downward revisions to economic growth forecasts and may lead to adjustments in fiscal policy.
In contrast, Argentina reported a 3.5% month-over-month and 5.5% year-over-year increase in economic activity for March. The first quarter saw a 0.3% quarter-over-quarter and 1.7% year-over-year expansion, with key contributions from agriculture, fishing, mining, and financial intermediation. Sectors like manufacturing and services, however, remained subdued.
Croatia's Gross Domestic Product (GDP) growth decelerated to 2.2% year-on-year in the first quarter, falling short of projections from the Croatian National Bank, the European Commission, and market analysts. Quarter-over-quarter growth stagnated, contrary to earlier expectations.
Turkey's economy expanded by 2.5% year-on-year in the first quarter, a rate that also fell below forecasts. While household spending saw a notable increase of 4.8%, this was offset by a substantial 12.7% decline in exports and a contraction in industrial manufacturing.
Israel's industrial production decreased by 1.1% in the first quarter on a seasonally adjusted annualized basis. This decline is associated with the ongoing conflict with Iran and Hezbollah, which has impacted low-tech manufacturing and extraction sectors. Despite this, sales figures indicated expansion, and business confidence improved in April and May.
In Canada, business sector labour productivity fell by 0.5% in the first quarter, representing the second consecutive quarterly drop. Concurrently, unit labour costs rose by 1.4% quarter-over-quarter and 3.2% year-on-year, signaling inflationary pressures.
Costa Rica's fiscal deficit narrowed to 3.4% of GDP on a 12-month rolling basis as of March. During the first quarter, revenues fell to 3.7% of GDP, while expenditures declined to 4.4% of GDP. The country's debt-to-GDP ratio stood at 59.2% at the close of the quarter.
These varied economic performances highlight a mixed global economic landscape, with some nations experiencing contraction or slowdowns, while others show growth, albeit sometimes below expectations.