Growth projection for 2009 drops to 1.2%

SANTIAGO.- Experts polled in the February economic expectations survey of the Central Bank, have forecasted a total expansion of only 1.2% for the economy of Chile in 2009.

This rate is lower than the previous 2009 estimate of 1.5%.

With regards to the interest rate, analysts surveyed are expecting it to drop down to 5% in the next two months. The market also expects that at their meeting this Thursday the Central Bank will cut the interest rate to 6.25%.

Within 11 months, the rate should go down to 4.0%, while by December of 2010 the rate is forecasted to be at 4.5%.

The growth projections for 2010 have gone up from 3.3% in the previous poll to 3.5% in the most recent one. The Monthly Economic Activity Indicator (Imacec) for this January is expected to be at about 0.5%.

As for the 12 month inflation forecast, the specialists expect a rate of 2.8% for December of 2009.