Chile's central bank raises 2024 GDP growth forecast
Reuters
Published Apr 03, 2024 06:18PM ET
Updated Apr 03, 2024 06:47PM ET
SANTIAGO (Reuters) - Chile's gross domestic product is expected to grow 2% to 3% in 2024 when compared to the year before, up from a previous forecast of 1.25% to 2.25% growth, the country's central bank said on Wednesday.
The central bank issued its revised forecast a day after slashing its benchmark interest rate by 75 basis points to 6.5% and signaling further rate cuts, whose size and timing will depend on the "evolution of the macroeconomic scenario and its implications for the trajectory of inflation."
Chile's economic activity has surprised to the upside in early 2024, overshooting expectations in January and February.
Inflation in the Andean country, the central bank noted in its monetary policy report on Wednesday, has declined sharply towards the 3% target after peaking in 2022, largely due to reduced domestic spending and a narrowing activity gap.
This has helped correct "large" macroeconomic imbalances observed in recent years, the central bank noted, with two-year inflation forecasts remaining steady at 3% for multiple consecutive quarters.
The central bank said it now projects headline inflation to end this year at 3.8% in light of the local currency's recent depreciation, up from a previous estimate of 2.9%, but still sees it converging to the target within its two-year policy horizon.
It also projected GDP growth in 2025 and 2026 to range between 1.5% and 2.5%, indicating a convergence to the economy's potential growth rate.
The projection for next year came in slightly below the previous growth forecast of 2% to 3%.
The central bank in the world's largest copper producer also estimated copper prices to average $3.85 per pound in 2024, up from a previous forecast of $3.80 per pound.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.