Slowing markets in Chile

Inflation in Chile likely to be key reasons that property markets and economic growth slow during 2008, Central Bank says.

The Central Bank of Chile released findings that the 2008 economic growth and property market forecasts will not be as good as once thought. They cited this information based on the current and likely future of inflation within the country. Inflation will be faster than expected throughout Chile.

Looking towards December of 2007, the Central Bank says that the economy did grow, by as much as 5.2 per cent. This information comes from the monetary report which was issued this month. It also sites the report out in September of 2007 in which economic growth was predicted for the remainder of 2007 to be 5.75 per cent to 6.25 per cent.

The Central Bank also notes that growth will continue to slide in 2008. It is predicting the early part of the year to see a growth of just 5 to 6 per cent in the economy.

The bank also provided indications on pricing for 2008, in that it expects consumer prices to rise in 2008 by 7.1 per cent. This is also an increase from the early monetary policy report issued in September of 2007. Then, the consumer price increase was said to be 2.7 per cent lower than this current figure.

Chile is the fourth largest economic state in South America.

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