SANTIAGO, July 31 -- Chile's government downgraded its economic growth forecast for 2024 from 2.7 percent to 2.6 percent, and lowered its inflation forecast for the year to 3.7 percent, the Finance Ministry said Wednesday.

Finance Minister Mario Marcel and other ministry officials presented the latest figures to parliament in a Public Finance Report for the second quarter of 2024.

According to the ministry's macroeconomic coordinator, Andres Sansone, economic activity contracted slightly in the second quarter but will resume growth in the third quarter.

"Given a somewhat worse performance than expected in the non-mining sectors in the second quarter, the non-mining GDP (gross domestic product) is being reviewed," he said.

The government slightly upgraded its 2025 growth forecast to 2.6 percent.

Regarding inflation in 2025, officials revised their figure upwards, from 3.4 percent to 4.4 percent, due to higher electricity rates in the first half of the year.

Chile's economy grew 1.1 percent in May year on year, below the expectations of the domestic financial market, the central bank reported at the beginning of this month.

  - Xinhua