Chile Projects Promising Economic Growth by 2026

Chile's central bank forecasts economic growth of 1.5% to 2.5% for 2025 and 2026, after a 2.3% expansion this year. Inflation is set to end at 4.8% in 2023 and decrease to 3.6% by 2025, reaching the target of 3% early in 2026.

Chile's central bank has projected promising economic growth ranging from 1.5% to 2.5% for both 2025 and 2026. This follows a 2.3% expansion expected by the end of this year, as detailed in the latest December Monetary Policy Report (IPoM) released on Wednesday.

According to the report, annual inflation rates are projected to conclude this year at 4.8%, eventually dropping to 3.6% by the end of 2025. The inflation target of 3% is anticipated to be achieved in the early months of 2026.

The bank noted that inflationary pressures over the medium term will primarily be influenced by a weaker forecast for domestic demand. It also mentioned that the activity gap is expected to remain slightly more negative until the end of 2025, which could help alleviate inflationary pressures.