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Chile govt lowers forecast for 2023 economic growth

Published 2023-07-12, 12:46 p/m
© Reuters. Local residents walk along a pedestrian street in Santiago, Chile July 7, 2022. REUTERS/Ivan Alvarado
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SANTIAGO (Reuters) - Chile's government now expects gross domestic product (GDP) to grow 0.2% in 2023, Finance Minister Mario Marcel told the Senate on Wednesday, revising its forecast down from a previous estimate of 0.3%.

Internal demand in the world's largest copper producer is seen falling 4.1% this year from 2022, Marcel added, a larger drop then the 3.5% one projected by the government in May.

The Andean country's government also revised down its forecast for average inflation and copper prices this year.

© Reuters. Local residents walk along a pedestrian street in Santiago, Chile July 7, 2022. REUTERS/Ivan Alvarado

Chile now expects inflation to average 7.8% in 2023, slightly below the 7.9% projected two months ago although still above the central bank's 3% target.

Copper prices, meanwhile, are seen averaging $3.85 per pound, down from the $3.86 estimated before.

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