Chile’s Finance Ministry raised its forecasts for this year and now expects positive economic growth and faster inflation, adding to views that the nation’s slowdown will be less severe than initially thought.
(Bloomberg) — Chile’s Finance Ministry raised its forecasts for this year and now expects positive economic growth and faster inflation, adding to views that the nation’s slowdown will be less severe than initially thought.
Gross domestic product will expand 0.3%, compared to a previous estimate of a 0.7% decline, according to the government’s quarterly public finances report published on Wednesday. Average inflation will reach 7.9%, above the prior forecast of 7.3%.
The report builds on optimism that one of Latin America’s richest nations is holding up against headwinds including high borrowing costs, political uncertainty and global turbulence. The central bank, which boosted its own economic outlook last month, is seen holding its key interest rate at an over two-decade high on Friday as consumption cools more gradually than expected.
Read more: Chile’s Costa Dismisses Early Rate Cuts, Even as Inflation Slows
The finance ministry improved its 2023 growth outlook as it now sees a higher average price for copper, which is Chile’s main export, as well as a shallower decline in domestic demand.
Economic activity fell less than expected in March as a jump in services softened the blow from a fall in mining, according to central bank data.
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