Chile’s economy projected to stagnate this year

Santiago de Chile, Sep 6 (Prensa Latina) The Central Bank of Chile published its third monetary policy report, where it projects that the country's Gross Domestic Product (GDP) will be between -0.5 and zero percent by the end of this year.

September 6, 2023
12:50

The entity’s forecasts are in line with the data published the day before by the Economic Commission for Latin America and the Caribbean, which estimates a contraction of -0.3 points of Chilean GDP in 2023 and a modest growth of 1,8 in 2024. On the other hand, the national financial regulator announced that inflation continues to decrease, but is still above expectations.

In July, this indicator was 6,5%, far from the December target of 4.3 units.

According to the Central Bank, the drop in inflation does not mean a reduction in consumer prices, but rather that they will grow at a slower pace.

Progress in the economic adjustment process allowed the reduction of the leading interest rate, which gradually decreased from 11,25 points in July to 10,5 in August and 9,5 in September.

In the current scenario for next December, the rate will be between 7,75 and 8, but this will depend on macroeconomic conditions and the external situation.

jrr/arm/mem/car/ea