IMF projects that Chile will not grow in 2023

The International Monetary Fund (IMF) projected that Chile, unlike the main neighboring economies, will not grow in 2023.

Although it improved this year’s expansion to 1.7%, the outlook for next year is 0.0%.

In contrast, for Argentina, Brazil, Colombia, Mexico, and Peru it forecast GDP growth of 3.0%, 1.1%, 3.5%, 1.2%, and 3.0%, respectively.

Latin America is one of the few regions that saw an improvement in the Fund’s forecast for this year, which now stands at 3%, half a point higher, although it worsened its forecast for 2023 when it estimates a growth of 2%, half a point lower.

On inflation, the Fund was also pessimistic and revised its global forecasts upwards.

The world’s leading economy, the United States, underwent a major revision in the Fund’s forecasts, which it had already announced a few days ago: 2.3% growth for this year and only 1% next year, 1.4 and 1.3 points less than in its previous estimates.

And the world’s second-largest economy, China, according to the IMF, will grow by 3.3% this year (1.1 points less than previously estimated) and 4.6% next year, half a point less.

For the Fund, the slowdown in the Chinese economy has “global consequences” because closures, supply problems, and the fall in domestic demand are reducing the demand for goods and services from the Asian giant to other countries, which are therefore seeing their economies suffer more.

With information from EFE