SANTIAGO, June 18 (Reuters) – Chile’s Central Bank has raised its economic growth forecast for the year to a range of 2.0% to 2.75%, up from its previous estimate, according to the June Monetary Policy Report released on Wednesday. For 2026, the bank maintained its growth expectation at 1.5% to 2.5%. The improved performance at the beginning of the year has set a higher starting point for economic activity, with a less negative output gap expected in the short term. This is anticipated to converge to a growth rate consistent with its long-term trend as temporary factors contributing to early 2025 growth dissipate. The bank reiterated that global trade disputes and geopolitical tensions add uncertainty but expects their impact on Chile’s economy to be limited. The bank also forecasted annual average inflation to reach 4.3% this year, ending December at 3.7%. The inflation trajectory remains largely unchanged from March projections, with expectations to hit 3% annually by the first half of 2026. Domestic demand is projected to grow by 3.2% in 2025, up from the previous estimate of 2.5%. Additionally, copper prices, Chile’s main export, are expected to remain at $4.30 per pound through 2027. Increased investment in large mining and energy projects is anticipated, particularly from the second half of 2025. Gross Fixed Capital Formation growth is estimated at 3.7% for 2025, rising to 3.6% and 3.3% in 2026 and 2027, respectively.
— new from Reuters
