Chile economy grew 0.8% in the second quarter from the previous three-month period on a seasonally adjusted basis, as the country's mining sector saw a modest recovery.
Compared to a year earlier, GDP expanded 1.9%, up from an annual growth of rate of 1.6% in the first quarter of 2019, Banco Central de Chile said in a report.
The mining sector posted annual growth of 0.2% in the second quarter after contracting 4.2% in the first quarter. Meanwhile, the non-mining sector expanded 2.1% year over year, compared to 2.2% in the first three months of the year.
Annual GDP growth was also supported by higher domestic demand, which increased 1.8% from a year ago, the central bank added.
Chile is the world's leading producer of copper, but the U.S.-China trade war has weighed on the price of the metal. In July, Chile's government lowered its 2019 GDP growth forecast to 3.2% from 3.5%, with Finance Minister Felipe Larrain saying growth of 3% "would be a great accomplishment for our economy this year."
Following a rate cut in June, the central bank left its benchmark interest rate unchanged at 2.5% in July. However, it left the door open for additional monetary stimulus if economic risks and uncertainty persist.
