SANTIAGO – Private sector analysts have reduced from 2.1 percent to 1.9 percent their forecast for economic growth in Chile this year, according to survey results released Wednesday by the Central Bank.
This marks the ninth straight month that the 50 academic economists, consultants and financial advisers polled by the Central Bank have dialed back their expectations for 2016.
The Central Bank, which forecast growth in the range of 2 percent to 2.5 percent last year, will release the gross domestic product figure for 2015 on March 18.
Headwinds from the global economy and low levels of domestic consumption and investment are some of the factors hampering growth in Chile.
Inflation was 4.4 percent at the end of 2015, surpassing the Central Bank’s target range of between 2 percent and 4 percent over a two-year cycle.
Experts expect an inflation rate of 3.6 percent by the end of 2016.
In this context, analysts expect that the Central Bank will decide to maintain its benchmark interest rate at 3.5 percent when the board meets Thursday to review monetary policy.
Survey respondents said they think the Central Bank will boost the rate to 3.75 percent in July.