Chile's Economy: A Revised Growth and Inflation Outlook

Chile's central bank revised its GDP growth forecast for 2023 to 1.5%-2.5%, down from 2%-3%. The bank also adjusted its 2026 inflation forecast upward to 3.6%, citing rising global fuel prices. Inflation is expected to hit the 3% target by Q2 2027.

Chile's central bank has revised its economic outlook for the year, predicting a gross domestic product (GDP) growth of between 1.5% and 2.5%. This marks a decrease from its earlier forecast of 2% to 3% growth.

The financial institution has adjusted its projections for inflation in 2026, raising it to 3.6%, up from the previous prediction of 2.9%. This revision is attributed to mounting pressures from rising global fuel prices, said the bank.

The bank also noted in its latest report that it anticipates inflation to align with its 3% target by the second quarter of 2027, reflecting a gradual path towards economic stability.