ECLAC sharply reduces growth forecasts for Chile in 2007

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SANTIAGO.- The Economic Commission for Latin America and the Caribbean (ECLAC) reduced its growth projection for the Chilean economy today from 6% to 5.3%, maintaining its 2008 growth projection for the GDP at 5%.

In addition, for 2007, ECLAC has projected an increase in the growth rate to 5.6% for economies of the region, up from its previous estimate of 5.0%.

For 2008, ECLAC has also improved its growth forecast for the region from 4.6% to 4.9%.

Last year, the Latin American and Caribbean economies experienced a collective growth of 5.6%.

In the middle of the sub-prime mortgage crisis in the United States, ECLAC said that the most likely scenario is a slow in the country's growth, from an estimated 2.2% for 2007 to 2.0% in 2008. It cannot, however, "rule out a recession".

Nevertheless, ECLAC maintained that "the region is much better prepared to face an upsurge in external volatility".