global economy

Chile central bank predicts greater fall in GDP

Agence France-Presse, Agence France-Presse
Chile central bank predicts greater fall in GDP

LOCKDOWN. An aerial file photo of the empty Kennedy Avenue in Santiago, Chile, on March 27, 2020.

Photo by Martin Bernetti/AFP

The Central Bank of Chile sees the economy shrinking by 5.75% to 6.25% in 2020 – worse than its previous prediction of a 4.5% to 5.5% fall

Chile’s central bank on Wednesday, December 9, lowered its projection for the copper-rich South American country’s economic contraction as uncertainty over the effects of the coronavirus pandemic persist.

It said the economy would shrink by 5.75% to 6.25% in 2020 – worse than its previous prediction of a 4.5% to 5.5% fall.

The bank said “the macroeconomic scenario continues to show more uncertainty than usual, with projections closely tied to the evolution of the pandemic and its effects on the earnings of people and businesses.”

However, the bank noted that the economy had strengthened since the 2nd quarter amid tough health restrictions aimed at slowing the spread of the novel coronavirus.

However, it said “the process of recovery has been slower than we thought it would be a few months ago.”

Health authorities have announced that a partial lockdown will be reimposed from Thursday, December 10, in the metropolitan region around the capital Santiago, home to more than 7 million of Chile’s 18 million population.

The bank said that “could slow the process of economic recovery.”

On the bright side, the bank improved its projection for 2021 to 5.5% to 6.5% growth from a previous prediction of 4% to 5%. – Rappler.com