Chile´s economy contracted in the fourth quarter as an investment-led slowdown prompted the central bank to cut interest rates four times in the past six months.
Gross domestic product shrank 0.1 percent from the previous three months, the central bank said on its website today, compared with median forecast of eight analysts polled by Bloomberg for growth of 0.28 percent. GDP expanded 2.7 percent from the year earlier, the slowest pace in almost four years, and 4.1 percent in the full year.
Chile’s economy is slowing as an investment boom in the mining industry comes to an end amid rising costs and falling prices for the metal. The central bank cited weaker-than-expected demand in the economy when it cut interest rates to 4 percent on March 13, and left the door open to further reductions.
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