The Feb. 27 earthquake will cause a 1-percent decline in the Chilean economy, but not a recession, the country's study center Libertad y Desarrollo (LyD) said on Sunday

In 2010, Chile's gross domestic product (GDP) will grow by 4 percent, not the 5 percent as forecasted before the quake, the LyD said.

"Although it is difficult to see the possible impact of the earthquake on the economic activity of this year, a first analysis told us that there will be an impact in the first two quarters," the center said in its report.

The LyD said that the Chilean economy will not contract at any quarters, but the biggest pressure will emerge between March and June when the GDP will grow by just 0.6 percent.

The consultancy agency IMTrust said the losses caused by the earthquake could reach 8 billion U.S. dollars.

Hermann Gonzalez, an expert from Zahler and Co. consultancy company, said that in February, the economic activity registered a growth of 4.5 percent, but in March it will see a 5-percent drop.

Meanwhile, Crisitan Gardeweg, an expert from the consultancy company Calfin Capital, foresaw a drop of 9 percent in March due to the earthquake.