UPDATE 3-Chile Q3 GDP grows 5.7 pct vs yr ago,local demand jumps
* GDP grew a seasonally adjusted 1.4 pct in Q3 vs Q2 * Seasonally adjusted growth slowed pace * Domestic demand increased 8.0 pct year on year * Finance Minister says economic growth to slow in Q4 SANTIAGO, Nov 19 (Reuters) - Chile's economy kept expanding at a fast clip in the third quarter versus the year-earlier period, fueled by a jump in domestic demand, though growth slowed slightly from the preceding quarter, central bank data showed on Monday. The small, export-dependent economy expanded 5.7 percent from a year earlier. The country grew a seasonally-adjusted 1.4 percent in the third quarter versus the second quarter, slowing from an upwardly revised 2.0 percent expansion in the second quarter from the first quarter. "Save for industry and fishing, all industries grew," the central bank said in its statement. "Mining, personal services, business services and retail had the biggest effect overall." "From a spending perspective, the motor behind GDP's expansion was domestic demand, which grew 8.0 percent, fueled by consumption and investment," the bank said, referring to the domestic demand growth in the third quarter of this year as compared with the third quarter of 2011. Domestic demand increased 6.8 percent in the second quarter and 4.6 percent in the first quarter, both year-on-year. "We're going to see a slowdown in the last quarter of the year ... we're already feeling it," Finance Minister Felipe Larrain said on Monday, after the GDP data was released. "This is an economy that is growing with strength, fueled by investment and robust consumption," he said, adding that inflationary risks were limited. Chile may post growth of slightly more than the official forecast of 5 percent this year, Larrain told Reuters earlier this month, but he kept to a growth outlook for 2013 of 4.8 percent, noting that Chile faces slowing exports to Europe. The world's No.1 copper producer grew 5.6 percent in the January to September period compared with a year ago, t he bank also said on Monday. Second quarter economic growth was upwardly revised to 5.7 percent from a previous 5.5 percent rate. Even as the Chilean economy gradually eases, domestic demand's 8.0 percent expansion was the largest in a year. "Economic growth continues to be very dynamic. Overheating is a risk ... The growth data should be taken with caution," said Mario Arend, chief economist at Celfin Capital. "We believe that interest rate cuts can be ruled out ... the market will probably start to expect interest rate hikes for next year," Arend added. Chile's central bank kept its benchmark interest rate on hold at 5.0 percent, as expected, on Tuesday for the 10th consecutive month as robust local growth offset looming risks from a slowdown in global demand. Rates have stayed on hold since a cut in January largely because the Andean nation has shown better-than-expected resilience to slowing demand from top trade partner China and fallout from the euro zone's crisis. The benchmark interest rate is seen being held at its current 5.0 percent in three, six, 12 and 24 months, the central bank's fortnightly poll of traders showed on Wednesday.