In its latest quarterly monetary policy report, Banco Central de Chile lowered its 2017 GDP growth forecast for Chile to between 1.5% and 2.5%, from a previous estimate of 1.75% to 2.75% made in September.

"For 2017, the lower initial velocity, in a context of higher risks and still markedly pessimistic confidence levels, suggests that activity will take a little longer to achieve near-potential growth rates," the central bank said.

Meanwhile, Chile's economy is expected to grow by 1.5% for 2016, toward the lower end of the range estimated in September.

The central bank notes that the GDP guidance for 2017 is higher relative to 2016 due to the economy showing no signs of imbalances. Additionally, the mining sector is not expected to see sharp declines and investment has registered as positive, in contrast to three consecutive years of annual declines.