SANTIAGO, May 3 (Xinhua) -- The Chilean government lowered the country's economic growth projection for 2022 to 1.5 percent from a previous estimate of 3.5 percent to reflect a "challenging economic environment," the Chilean Finance Ministry announced in a report Tuesday.

The Consumer Price Index estimate in 2022 was raised from 6.5 percent to 8.9 percent, while domestic demand will have an annual decline of 1 percent "following a strong recovery of economic activity in 2021 due to greater liquidity in the economy," said Chile's First Quarter Public Finance Report for 2022.

The Chilean economy is expected to experience a correction this year, which should make it possible to adjust the macroeconomic imbalance caused by COVID-19, it added.

After presenting the report, Finance Minister Mario Marcel noted that the study showed that the economy has to transition "as orderly as possible" this year from being "overheated," which is how it ended 2021, to sustainable non-inflationary growth.