Chilean government foresees a strong economic slowdown in 2009 due to the global economic crisis, local press reported Friday.

Chile registered in 2008 a lower-than-expected economic growth of 3.4 percent. The government estimates the Gross Domestic Product (GDP) in 2009 will grow between 2 and 3 percent and 120,000 employment opportunities will be generated.

However, as inflation rate in January reached a minus 0.8 percent, the Central Bank is expected to further lower the basic interest rate.

Authorities said in January there were massive dismissals in the sectors of construction, commerce, mining, bank and salmon fishing, with some 150,000 people losing their jobs in the month alone.

Source: Xinhua