Chile forecasts 0.2% annual growth for 2023

Chile’s Finance Minister, Mario Marcel, announced that the country is projecting a 0.2% growth rate for this year, slightly surpassing expectations.

Marcel shared this information during his appearance before the Finance Committee of the Senate.

The projections for Chilean economic growth are currently centered around zero, with some estimates slightly higher or lower.

These figures were presented in the “Public Finance Report for the second quarter of 2023.”

According to the report, Chile’s Gross Domestic Product (GDP) is expected to reach 0.2% growth by the end of 2023, which is 0.1% lower than the previous projection.

However, the Mining GDP is forecasted to experience a decline from 4.9% to 4.0%, a change that surprised officials during the first half of the year.

Minister Marcel explained that temporary factors affected production in the first half, but mining activity is anticipated to rebound in the second half, partly due to the commencement of operations at Quebrada Blanca.

The projected average inflation for the year remains at 7.8%.

Minister Marcel emphasized the stability of price-related data, which provides confidence not only for the economic activity throughout the year but also for fiscal revenue projections.

Earlier this month, the Central Bank of Chile reported a 2% year-on-year decline in the country’s economy for May, following a 1.1% drop in April.