Chile's Central Bank revised its GDP projections for the year on Wednesday, predicting a fall of 5.5 to 7.5 percent due to the effects of the coronavirus pandemic.
It would be the largest contraction in 35 years and comes three months after the bank projected a fall of just 1.5 to 2.5 percent.
Chile reported its first coronavirus case in early March and while its initial measures to prevent the spread were mild – the vital copper industry was never shut down and quarantines were used selectively – in mid-May the government placed the capital Santiago under lockdown.
Seven million of the country's 18 million population live in the capital, which generates around half of Chile's GDP.
But it warned that the figures for May and June would be even worse given the increased lockdown measures in those months.
However, there was some good news with the Central Bank predicting the recovery would begin in the third quarter of 2020, with growth of 4.75 to 6.25 percent next year and a further 3-4 percent in 2022.