IMF raises 2008 GDP forecast for Chile from 4.2% to 4.5%

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WASHINGTON.- The International Monetary Fund (IMF) readjusted its economic forecast for the Chilean economy today, indicating a growth rate of 4.5% for the 2008 GDP and 3.8% for the 2009 figure.

On July 23rd of this year, when the Article IV information on Chile was revealed, the IMF predicted an expansion of 4.2% and 4.6% for each year. Meanwhile, on April 9th, the entity forecasted a figure of 4.5% for 2008 and 2009.

Growth during 2008 is expected to be led by Peru (9.2%), Argentina (6.5%), Uruguay (6.5%), Venezuela (6.0%) and Brazil (5,2%). For 2009, the highest levels of expansion are expected to be in Peru (7.0%), Uruguay (5.5%), Chile (3.8%), Argentina (3.6%), Colombia (3.5%) and Brazil (3.5%).

With regards to inflation, the IMF expects Latin America to display an average rate of 7.8% in 2008 and 7.3% in 2009. Chile is predicted to have an inflation rate of 8.9% and 6.5% respectively, which is significantly higher than the predictions made during July (5.5% and 3.7%) and April (6.6% and 3.6%) of this year.

After analyzing the current economic state, the IMF indicated that it is expecting a regional deficit of 0.8% for 2008 and 1.6% for 2009 (versus +0.5% in 2007). Chile is predicted to reach a positive balance of 1.1% and 0.9% for each year (versus +0.1% in 2007).