Chile Adjusts Economic Forecast Amid Softening Mining Growth

Chile's government has revised its economic growth forecast to 2.4% for this year, reflecting a slight downturn from the previous estimate of 2.5%. This adjustment comes as the nation braces for slower growth in its critical mining sector.

In the fiscal report released Friday by Gabriel Boric's outgoing administration, it was predicted that average annual inflation is set to decrease to 2.7% by 2026, a revision from earlier projections of 3.1%.

Copper prices have been adjusted upward to an average of $5.15 per pound, exceeding the prior forecast of $4.35 per pound, providing a silver lining in Chile's export strategy. Meanwhile, domestic demand is expected to rise by 2.9%, aligning with earlier anticipations.