Chilean govt lowers 2022 economic growth estimate to 1.5%

Santiago, May 4 (IANS) The Chilean government lowered the country’s economic growth projection for 2022 to 1.5 per cent from a previous estimate of 3.5 per cent to reflect a “challenging economic environment,” the Chilean Finance Ministry announced in a report.

The Consumer Price Index estimate in 2022 was raised from 6.5 to 8.9 per cent, while domestic demand will have an annual decline of 1 per cent “following a strong recovery of economic activity in 2021 due to greater liquidity in the economy,” said Chile’s First Quarter Public Finance Report for 2022 released on Tuesday.

The Chilean economy is expected to experience a correction this year, which should make it possible to adjust the macroeconomic imbalance caused by Covid-19, it added.

After presenting the report, Finance Minister Mario Marcel said the study showed that the economy has to transition “as orderly as possible” this year from being “overheated,” which is how it ended 2021, to sustainable non-inflationary growth, Xinhua news agency reported.