Finance Minister Felipe Larrain told a Chilean Senate commission he expected the average copper price for 2019 to be $2.85 per pound, down sharply from a previous estimate of $3 per pound.

Copper exports from Chile, the world's top producer of the red metal, can account for as much as 15pc of the nation's GDP.

"We all had higher hopes when the year started...but to grow at 3pc would be a great accomplishment for our economy this year," Larrain said.

Chile's mining sector was also impacted earlier this year by unusually heavy rains in its copper-rich northern desert and a two-week strike at Codelco's Chuquicamata copper mine, one of the world's largest.

That prompted Chile's Central Bank to cut its prediction for growth last month to 2.75-3.5pc from a previous view of 3pc to 4pc.

Larrain predicted annual inflation to hit 2.2pc this year, up slightly from a prediction of 2.1pc in March.

The administration of center-right President Sebastian Pinera has planned nearly $1.5 billion in public spending in an effort to boost growth in the second half of 2019, Larrain said.