Chile's Economy Stagnant in Most Optimistic Scenario for 2023 -Cenbank

Chile's central bank on Wednesday lowered the top end of its estimate for the country's economic performance in 2023, saying it now forecasts gross domestic product (GDP) to show no growth in the most optimistic scenario, Reuters reported. The monetary authority previously expected an economic expansion of as much as 0.25% this year. It maintained the lower end of its GDP forecast at a contraction of 0.5%. The lowered estimate accounts for the impact of operational issues that have hit mining production in Chile, the world's largest copper producer, in recent months, the central bank said. Non-mining activity is expected to show growth by the end of the year, the monetary authority added. The South American country's economy should rebound by next year however, the central bank said, with GDP growth expected between 1.25% and 2.25%. Chile's central bank has fought to contain inflation, and on Tuesday cut its benchmark interest rate by 75 basis points to 9.5% as price pressures have eased more quickly than expected. The central bank expects cuts to continue, it said on Wednesday, closing the year with a benchmark interest rate between 7.75% and 8%. Read more.