Chile announces $5.5 billion economic recovery plan as protests bite

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Chile announces $5.5 billion economic recovery plan as protests bite
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The Chilean government announced plans on Monday to roll out a $5.5 billion econ...

SANTIAGO - The Chilean government announced plans on Monday to roll out a $5.5 billion economic recovery plan and issue more debt in foreign currencies after rioting and protests triggered the worst monthly contraction in a decade.

Finance Minister Ignacio Briones slashed the official forecast for economic growth this year to 1.4% from 2% just a month ago, and he put next year’s expansion at 1% to 1.5% instead of its 2.3% estimate previously. Riots in Chile began on Oct. 18 over a hike in metro fares but quickly spiraled into mass protests, arson and looting that have left 26 dead and upwards of $1.5 billion in losses for businesses. The peso has plummeted to a historic low, prompting multiple central bank interventions.

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