Experts reduce growth forecast for Chilean economy by 2.5% for 2009

SANTIAGO.- Experts questioned by the Central Bank Economic Expectancy Poll for November have sharply decreased their growth forecast for the Chilean economy in 2009.

The analysts projected that the country's economy would expand by 2.5%, while the October poll had indicated an estimated GDP of 3.5% for 2009.

Economic forecasts for 2008 also dropped from 4.1% to 4.0%. Meanwhile, for 2010, estimates have plunged from 4.5% in the previous poll to 4.0% indicated by this most recent poll.

The Monthly Economic Activity Index (IMACEC) for October was predicted to be 4%.

Meanwhile, experts questioned by the central bank dropped their inflation forecast for 2009 from 4.7% to 4.6% and predicted that the CPI for November would reach 0.2%.

With regards to the interest rate, the analysts foresee the central bank maintaining the figure at its current level of 8.25% during their next meeting on November 13th. The experts also believe that the rate will remain the same over the next few months.