Santiago — Chile cut its 2014 economic growth forecast for the second time this year, citing a steep slowdown in domestic demand.
The economy of the world´s biggest copper producer will expand 3.2 percent in 2014, down from a previous estimate of 3.4 percent, Budget Director Sergio Granados said in a speech to Congress Monday. Domestic demand will expand 1.8 percent, down from the 5.4 percent forecast in this year's budget.
The government cut its forecast after manufacturing stalled, retail sales growth eased and investment tumbled in the first part of the year. The slowdown has been worse than the government and central bank expected, with policymakers cutting their own forecasts three times and reducing the benchmark interest rate rates four times in the past year.