Chilean economy will grow from second quarter of 2023 and inflation will fall, Finance Minister estimates

Chile’s Finance Minister, Mario Marcel, projected yesterday that the Chilean economy will see quarterly growth from the second quarter of 2023 onwards while inflation will come down.

“In March, April, we should already be with inflation below double digits, and that should continue to reduce over the year,” Marcel said at a seminar.

Marcel explained that the local economy is advancing thanks to the “behavior and definition of public policies, the behavior of the economy and the inflection in terms of investment”.

The Chilean Central Bank anticipated that the Andean country’s economy would grow by 2.4 percent in 2022 and fall between 1.75 and 0.75 percent in 2023.

At the same time, Chilean inflation surpassed the barrier of the last three decades, reaching 13.3 percent in November, with a marked increase in the price of fuel and food.

In this context, the president of the Central Bank, Rosanna Costa, stated that “returning to sustainable production and expenditure levels in line with the country’s productive capacity is an unavoidable condition” for lowering inflation to the target range of 3 percent in two years.

Costa projected falls in output in the next quarters, as well as adjustments on the demand and consumption side, which implies “that the economy will move towards negative gaps” during the next two years, she said in the same activity.

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