UPDATE 1-Chile's government sees economy growing near 2 pct in 2014
(Adds finance minister's comments, background)
SANTIAGO Oct 7 (Reuters) - Chile's economy, which is feeling the drag of a slowdown in mining investment and cooling domestic demand, will likely grow around 2 percent in 2014, Finance Minister Alberto Arenas said on Tuesday.
That would be the worst performance for the economy of the top copper exporter since a 2009 recession and a significant downgrade to the previous government forecast for 3.2 percent growth. Last year, the economy grew 4.1 percent.
Chile's central bank has predicted the economy will grow between 1.75 percent and 2.25 percent in 2014.
Last month, President Michelle Bachelet announced an increase in public spending to help revive the stagnating economy.
"With the measures we've adopted this last quarter, which among other things are related to a boost in public investment of no less than $500 million between September and December, we're forecasting economic growth of around 2 percent in 2014," Arenas said in a presentation to Congress.
The government has previously said it expects the economy to pick up its pace of growth to 3.6 percent in 2015, due in part to increased public spending. (Reporting by Anthony Esposito; Editing by Dan Grebler)
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