UPDATE 1-Chile says economy to shrink far more than originally predicted
JUNE 22, 2020 / 6:52 PM / UPDATED AN HOUR AGO
2 MIN READ
SANTIAGO, June 22 (Reuters) - Chile’s Budget Office said on Monday the economy would shrink 6.5% in 2020, a far deeper contraction than predicted just two months ago as the coronavirus pandemic pummels the world´s top copper producer.
Budget officials estimated in April that gross domestic product (GDP) would contract by 2%. At the time, President Sebastian Pinera had talked of a “gradual reopening” of the economy.
Since then, the virus has exploded in Chile, prompting health officials to lock down the capital Santiago, the country’s economic engine, and force nearly 10 million of its citizens into lockdown.
The budget office said in its second-quarter public finance report on Monday it saw inflation at 2.8%, down from its April prediction of 3.3%. Domestic demand, meanwhile, is expected to tumble 9.8%, versus an estimated drop of 3.3% previously.
More:
https://www.reuters.com/article/chile-economy/update-1-chile-says-economy-to-shrink-far-more-than-originally-predicted-idUSL1N2DZ2LR?rpc=401&
(I never knew Santiago had 10 million citizens! What a surprise.)
