The GDP advanced at its slowest pace since the third quarter of 2009, when the economy contracted 0.6 percent. In the first three months of 2014, the GDP expanded a downwardly revised 2.4 percent.
On the expenditure side, domestic demand contracted for the second straight quarter by 0.9 percent, hurt by an 8.1 percent fall in gross fixed capital formation (machinery and equipment investment shrank sharply by 21.1 percent). Household consumption grew 1.9 percent in the second quarter of 2014, slowing from a 3.6 percent expansion in the previous period and government consumption also increased at a slower 3.2 percent. Exports contracted 0.4 percent and imports fell 9.1 percent.
On the production side, agriculture and forestry contracted the most (4.4 percent), followed by manufacturing (-1.7 percent), restaurant and hotels activities (0.8 percent) and retail trade (0.4 percent). In contrast, mining increased at a faster 4.0 percent, driven by a 4.5 percent increase in copper production.
On a seasonally adjusted quarter-on-quarter basis, the economy advanced a meager 0.2 percent, following a revised 0.6 percent expansion in the previous period. Considering the first six months of 2014, the GDP grew 2.2 percent.