Experts lower 2008 economic growth projections from 4.6% to 4.2%

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SANTIAGO. -  Analysts surveyed by the Central Bank’s March Economic Outlook Poll have significantly lowered growth estimates for the Chilean economy.

The experts have decreased this year’s GDP growth estimate from 4.6% (indicated by the February poll) to a current prediction of 4.2%. The economic growth forecast for 2009 has dropped from 5.0% to 4.5%, while those polled are predicting a February Imacec (Monthly Economic Indicator) of 3.9%.

On the other hand, analysts have raised inflation projections, predicting it to reach 4.3% in December of this year – up from a previous estimate of 3.8% indicated by February’s poll.  The CPI for March is forecasted to be 1.0%.

The Chilean economy reported an inflation rate of 0.4 percent during February (double the rate indicated by market estimates) due to hikes in housing and food prices.