SANTIAGO, Sept. 4 (Xinhua) -- The Central Bank of Chile on Wednesday downgraded its economic growth forecast for 2019 to between 2.25 percent and 2.75 percent, citing global uncertainty and slowing markets.
The bank's third monetary policy report (IPoM) of the year adjusted the previous growth forecast released in June, which projected 2.75 percent to 3.5 percent expansion in gross domestic product (GDP).
Projected economic growth for 2020 was also downgraded to between 2.75 percent and 3.75 percent, from the previous 3 percent to 4 percent, while the forecast for 2021 held steady between 3 percent and 4 percent.
"Due to the global outlook, we anticipate that the external push Chile will receive the rest of this year and through most of 2020, will be lower than what the IPoM took into account in June," the apex bank said.
In the second quarter of the year, domestic production and demand grew less than expected, dragged down by decreased consumption and other factors, the report said.
Private-sector salaried jobs grew less than expected, and expectations among consumers and business owners also diminished compared to the first quarter.
Given the economic indicators, the bank's board decided to lower the monetary policy interest rate by 50 basis points, to 2 percent.
In the second half of 2019, the economy is expected to pick up, but not enough to compensate for the lackluster results of the first six months.
