(Adds context, inflation forecast)
SANTIAGO, Feb 16 (Reuters) - The Chilean government on
Thursday pared back its forecast for the country's gross
domestic product (GDP) in 2023, saying it now expects a 0.7%
economic contraction in the year, down from a 0.5% contraction
seen earlier.
The move comes as the Andean nation's economy slows down
after a rapid post-pandemic recovery, with high interest rates
in place to combat soaring consumer prices in the world's
largest copper producer.
The government also said inflation this year was set to
reach 7.3%, up from a previous forecast of 6.3% and still far
above the central bank's target range of 2% to 4%. Internal
demand is seen falling 3.7%.
(Reporting by Fabian Andres Cambero; Editing by Chizu Nomiyama)
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