Chilean Market Forecasts 0.3% Economic Downturn in 2023

Economic specialists in Chile predict a slight decline in the economy for the upcoming year, a forecast recently announced by the Central Bank of Chile on a Friday.

They believe the economy will go down by 0.3% by the end of 2023. This info comes from a survey done in November.

The Economic Expectations Survey (EEE) survey looks at what might happen in the economy.

The same survey also suggests some growth. It says Chile’s economy could grow by 1.7% in 2024.

The last part of this year might see a little growth, too. Experts think it will grow by 0.2% in the last quarter of the year.

Inflation is another key topic. The experts predict it will change by 0.2% this month and next month.

In 2024, they think the Consumer Price Index (CPI) will go up by 3%. This fits with what the Central Bank wants. They want inflation to slow down slowly.

Finally, the report talks about the monetary policy rate. This rate helps control inflation by changing how much money is in the economy.

Experts think this rate will drop from 9% to 7% in five months.

Background

Chile’s economy has been through many changes. In recent years, it faced ups and downs. The economy grew fast a few years ago.

But then, it slowed down because of global issues. These issues included trade tensions and a health crisis.

Chile is known for its copper exports. Copper plays a big role in its economy. Now, the country is trying to diversify its economy. It’s focusing on other sectors like agriculture and technology.

The government is also working on new policies. These policies aim to make the economy stronger.

They want to reduce dependence on just a few industries. The goal is to make the economy more stable and diverse.

Inflation has been a challenge, too. In the past, high inflation hurt the economy. Now, controlling inflation is a big priority.

The Central Bank uses the monetary policy rate for this. This rate helps keep the economy balanced.