The Central Bank of Chile on Tuesday cut its growth projection for the Gross Domestic Product (GDP) for this year from a range of -0.5%-0.5%, as estimated last March to -0.5%%-0.25%.
“The economy has been making progress in resolving the macroeconomic imbalances accumulated in recent years”, indicated the issuing entity in its Monetary Policy Report (IPoM).
However, he stressed that there is still time for the economy to pick up its head. “In this scenario, the activity gap will turn negative during the second half of 2023 and will remain at these values for several quarters.“, he claimed.
The analysis maintains that activity and domestic demand evolved as expected, but there was “a greater drop than anticipated” in the “private consumption”.
The Central Bank estimates that activity in 2024 will grow between 1.25% and 2.25%, while in 2025 the increase in GDP will be between 2% and 3%.
The bank projects inflation of 4.2% for this year.
The IPoM was released after the Council of the Central Bank resolved on Monday to maintain the monetary policy interest rate at 11.25%.
Source: AFP
Source: Gestion
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