MercoPress. South Atlantic News Agency

Chile's Central Bank monthly report foresees 2021 inflation at 3.2%

Anti-covid-19 restrictions bear little to no impact on Chile's economy forecast

Chile's monthly report issued by the Central Bank Monday forecast inflation to close 2021 with a cumulative 3.2%, with no significant changes in sight for 2022 and 2023.

In addition to that, the country's Gross Domestic Product (GDP) will expand at a rate of “at least” 6% this year and are also optimistic about 2022 and 2023, according to the release.

Analysts once again upped their projections for 2021 from last month's 5.3%. It was the fifth such increase, according to the Economic Expectations Survey released Monday by Chile's Central Bank.

The EES specifically reported Chile's GDP will grow somewhere between 6% and 7% this year, despite lockdowns and circulation restrictions decreed within the anti-coronavirus efforts.

For 2022 and 2023, experts hope GDP will expand at a rate of 3.5% and 3.0%, respectively, the same as they had predicted in the survey last March.

Meanwhile, projections for consumer prices showed no variations compared to March, and experts expect inflation to close 2021 with a cumulative 3.2%, and 3% in 2022. For April they expect a CPI of 0.3%, then from the 0.4% rise in March.

In relation to the price of money, analysts expect the issuer to raise the interest rate by 25 basis points to 0.75% in eleven months and 1.25% in 17 months. And the peso dollar exchange rate is expected to to average Ch$ 720 / US$ 1 in two months.