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International Monetary Fund. European Dept.

2020 Article IV Consultation-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Belgium

International Monetary Fund. Western Hemisphere Dept.

1. The pandemic hit Chile while it was recovering from the impact of social unrest in October 2019. The economic performance before the unrest was solid, with growth averaging 3 percent in the preceding two years. The unrest triggered broad policy actions (see Country Report 2020/183) and the economy started recovering. Then, the Covid-19 outbreak induced a larger decline in growth, and prompted wide-ranging and unprecedented policy responses, accompanied by the approval of an FCL arrangement in May 2020.