Abstract
This 2016 Article IV Consultation highlights that GDP growth in Chile has been weak, with activity slowing in October. However, conditions are in place for the economy to recover. After expanding by a moderate 1.7 percent in 2016, growth is forecast to increase to 2 percent in 2017. Faster growth in main regional partners and more stable copper prices are expected to lift exports and investment. The recovery is, however, projected to be gradual, held back by slow wage and job growth and still low business confidence. The financial sector appears healthy. Banks' profitability is declining, but capital buffers are adequate and nonperforming loan rates are low.
Fund Relations
(As of April 30, 2015)
| Membership Status | ||
| Joined: December 31, 1945; Article VIII | ||
| General Resources Account | SDR Million | Percent Quota |
| Quota | 856.10 | 100.00 |
| Fund holdings of currency | 726.08 | 84.81 |
| Reserve Tranche Position | 130.02 | 15.19 |
| Lending to the Fund | ||
| New Arrangements to Borrow | 138.78 | |
| Percent | ||
| SDR Department | SDR Million | Allocation |
| Net cumulative allocation | 816.89 | 100.00 |
| Holdings | 745.03 | 91.20 |
| Outstanding Purchases and Loans | ||
| None |
| Membership Status | ||
| Joined: December 31, 1945; Article VIII | ||
| General Resources Account | SDR Million | Percent Quota |
| Quota | 856.10 | 100.00 |
| Fund holdings of currency | 726.08 | 84.81 |
| Reserve Tranche Position | 130.02 | 15.19 |
| Lending to the Fund | ||
| New Arrangements to Borrow | 138.78 | |
| Percent | ||
| SDR Department | SDR Million | Allocation |
| Net cumulative allocation | 816.89 | 100.00 |
| Holdings | 745.03 | 91.20 |
| Outstanding Purchases and Loans | ||
| None |
| Latest Financial Arrangements | |||||
| Type | Date of Arrangement | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) | |
| Stand-By | Nov 8, 1989 | Nov 7, 1990 | 64.00 | 64.00 | |
| EFF | Aug 15, 1985 | Aug 14, 1989 | 825.00 | 806.25 | |
| Stand-By | Jan 10, 1983 | Jan 9, 1985 | 500.00 | 500.00 | |
| Projected Payments to Fund (in SDR Million)1 | |||||
| Forthcoming | |||||
| 2015 | 2016 | 2017 | 2018 | 2019 | |
| Principal | |||||
| Charges/Interest | 0.03 | 0.05 | 0.05 | 0.05 | 0.05 |
| Total | 0.03 | 0.05 | 0.05 | 0.05 | 0.05 |
| Latest Financial Arrangements | |||||
| Type | Date of Arrangement | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) | |
| Stand-By | Nov 8, 1989 | Nov 7, 1990 | 64.00 | 64.00 | |
| EFF | Aug 15, 1985 | Aug 14, 1989 | 825.00 | 806.25 | |
| Stand-By | Jan 10, 1983 | Jan 9, 1985 | 500.00 | 500.00 | |
| Projected Payments to Fund (in SDR Million)1 | |||||
| Forthcoming | |||||
| 2015 | 2016 | 2017 | 2018 | 2019 | |
| Principal | |||||
| Charges/Interest | 0.03 | 0.05 | 0.05 | 0.05 | 0.05 |
| Total | 0.03 | 0.05 | 0.05 | 0.05 | 0.05 |
Exchange Rate System
Chile has accepted the obligations of Article VIII, Sections 2, 3, and 4 and maintains an exchange rate system free of restrictions on the making of payments and transfers for current international transactions. Chile has a floating exchange rate system.
Statistical Issues
(As of July 1, 2015)
Assessment of Data Adequacy for Surveillance
General: Data provision is adequate for surveillance. The National Institute of Statistics (INE) regularly publishes a full range of economic and financial data. The Central Bank of Chile (CBC) also publishes comprehensive macroeconomic and financial data. The Ministry of Finance publishes fiscal data.
Key publicly accessible websites for macroeconomic data and analysis are:
National Institute of Statistics: http://www.ine.cl/
Central Bank of Chile: http://www.bcentral.cl/
Ministry of Finance: http://www.minhda.cl/
Recent Developments: The Central Bank started to publish housing real estate price data in 2014, and a new series on external debt at market values in 2015 which allows better monitoring and identification of risks. The National Institute of Statistics (INE) has revised the basket and methodology of the Consumer Price Index (CPI) including to address some limitations in the clothing sub-index.
Data Standards and Quality
Data Standards and Quality
| Subscriber to the Fund’s Special Data Dissemination Standard (SDDS) since May 17, 1996. In coordination with STA, Chile is in the process to gain adherence to SDSS plus. | A data ROSC was published September 17, 2007. |
| Reporting to STA (Optional) | |
Data Standards and Quality
| Subscriber to the Fund’s Special Data Dissemination Standard (SDDS) since May 17, 1996. In coordination with STA, Chile is in the process to gain adherence to SDSS plus. | A data ROSC was published September 17, 2007. |
| Reporting to STA (Optional) | |
The CBC uses the standardized report forms (SRFs) to report monthly data for the central bank, other depository corporations (ODCs), other financial corporations (OFCs), and monetary aggregates. However, data for the ODCs exclude savings and credit cooperatives and OFCs exclude investment funds, general funds, housing funds, foreign capital investment funds, factoring societies, leasing companies, and financial auxiliaries.
The CBC reports all core and 7 of 28 encouraged financial soundness indicators on a monthly basis.
Chile: Table of Common Indicators Required for Surveillance
(As of July 1, 2015)
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
Reflects the assessment provided in the data ROSC, (published September 17, 2007 and based on the findings of the mission that took place during April 18-May2, 2007) for the dataset corresponding to the variable in Each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O); largely observed (LO); largely not observed (LNO); not observed (NO); and not available (NA).
Same as footnote 7, except referring to international standards concerning source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.
Same as footnote 8, except referring to international standards concerning source data, statistical techniques, assessment and validation of source data, assessment and validation of intermediate data and statistical outputs, and revision studies.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Chile: Table of Common Indicators Required for Surveillance
(As of July 1, 2015)
| Date of Latest Observation | Date Received | Frequency of Data6 | Frequency of Reporting6 | Frequency of Publication6 | Memo items7: | ||
|---|---|---|---|---|---|---|---|
| Data Quality -Methodological Soundness8 | Data Quality Accuracy and Reliability9 | ||||||
| Exchange Rates | July 1, 2015 | July 1, 2015 | D | D | D | ||
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | June 15, 2015 | June 23, 2015 | W | W | W | ||
| Reserve/Base Money | June 15, 2015 | June 23, 2015 | W | W | W | O, O, LO, O | O, O, O, LO, O |
| Broad Money | May 2015 | June 2015 | M | M | M | ||
| Central Bank Balance Sheet | January 2014 | March 2014 | M | M | M | ||
| Consolidated Balance Sheet of the Banking System | January 2014 | March 2014 | M | M | M | ||
| Interest Rates2 | July 1, 2015 | July 1, 2015 | D | D | D | ||
| Consumer Price Index | May 2015 | June 8, 2015 | M | M | M | LO, LNO, LNO, LO | LO, LO, LO, O, LO |
| Revenue, Expenditure, Balance and Composition of Financing3 -General Government4 | 2014 | June 30, 2015 | A | A | A | O, LO, LNO, LO | LO, O, O, LO, O |
| Revenue, Expenditure, Balance and Composition of Financing3-Central Government | May 2015 | June 30, 2015 | M | M | M | ||
| Stocks of Central Government and Central Government -Guaranteed Debt5 | Q1 2015 | June 30, 2015 | Q | Q | Q | ||
| External Current Account Balance | Q1 2015 | May 18, 2015 | Q | Q | Q | O, O, LO, LO | O, O, O, O, O |
| Exports and Imports of Goods | June 30, 2015 | June 23, 2014 | M | M | M | ||
| GDP/GNP | Q1 2015 | May 18, 2015 | Q | Q | Q | O, LO, LO, LO | LO, LO, LO, LO, O |
| Gross External Debt | March 2015 | May 7 , 2015 | M | M | M | ||
| International Investment Position10 | Q1 2015 | May 18, 2015 | Q | Q | Q | ||
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
Reflects the assessment provided in the data ROSC, (published September 17, 2007 and based on the findings of the mission that took place during April 18-May2, 2007) for the dataset corresponding to the variable in Each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O); largely observed (LO); largely not observed (LNO); not observed (NO); and not available (NA).
Same as footnote 7, except referring to international standards concerning source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.
Same as footnote 8, except referring to international standards concerning source data, statistical techniques, assessment and validation of source data, assessment and validation of intermediate data and statistical outputs, and revision studies.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Chile: Table of Common Indicators Required for Surveillance
(As of July 1, 2015)
| Date of Latest Observation | Date Received | Frequency of Data6 | Frequency of Reporting6 | Frequency of Publication6 | Memo items7: | ||
|---|---|---|---|---|---|---|---|
| Data Quality -Methodological Soundness8 | Data Quality Accuracy and Reliability9 | ||||||
| Exchange Rates | July 1, 2015 | July 1, 2015 | D | D | D | ||
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | June 15, 2015 | June 23, 2015 | W | W | W | ||
| Reserve/Base Money | June 15, 2015 | June 23, 2015 | W | W | W | O, O, LO, O | O, O, O, LO, O |
| Broad Money | May 2015 | June 2015 | M | M | M | ||
| Central Bank Balance Sheet | January 2014 | March 2014 | M | M | M | ||
| Consolidated Balance Sheet of the Banking System | January 2014 | March 2014 | M | M | M | ||
| Interest Rates2 | July 1, 2015 | July 1, 2015 | D | D | D | ||
| Consumer Price Index | May 2015 | June 8, 2015 | M | M | M | LO, LNO, LNO, LO | LO, LO, LO, O, LO |
| Revenue, Expenditure, Balance and Composition of Financing3 -General Government4 | 2014 | June 30, 2015 | A | A | A | O, LO, LNO, LO | LO, O, O, LO, O |
| Revenue, Expenditure, Balance and Composition of Financing3-Central Government | May 2015 | June 30, 2015 | M | M | M | ||
| Stocks of Central Government and Central Government -Guaranteed Debt5 | Q1 2015 | June 30, 2015 | Q | Q | Q | ||
| External Current Account Balance | Q1 2015 | May 18, 2015 | Q | Q | Q | O, O, LO, LO | O, O, O, O, O |
| Exports and Imports of Goods | June 30, 2015 | June 23, 2014 | M | M | M | ||
| GDP/GNP | Q1 2015 | May 18, 2015 | Q | Q | Q | O, LO, LO, LO | LO, LO, LO, LO, O |
| Gross External Debt | March 2015 | May 7 , 2015 | M | M | M | ||
| International Investment Position10 | Q1 2015 | May 18, 2015 | Q | Q | Q | ||
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
Reflects the assessment provided in the data ROSC, (published September 17, 2007 and based on the findings of the mission that took place during April 18-May2, 2007) for the dataset corresponding to the variable in Each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O); largely observed (LO); largely not observed (LNO); not observed (NO); and not available (NA).
Same as footnote 7, except referring to international standards concerning source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.
Same as footnote 8, except referring to international standards concerning source data, statistical techniques, assessment and validation of source data, assessment and validation of intermediate data and statistical outputs, and revision studies.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
World Bank—Fund Country-Level Work Program under JMAP
Delivery date refers to the Board date in lending projects, to delivery to client in case of AAA and to Grant effective date in case of RETF. Technical assistance includes Reimbursable Advisory Services (RAS).
| Title | Products | Expected Delivery Date* |
|---|---|---|
| 1. Bank work program | A. Investment Loans 1. Chile 2nd Social Inclusion for Shared Prosperity DPL (P158738) 2. Chile - Health Sector Support Project (P161018) | July 2017 July 2017 |
| B. Technical Assistance 1. Technical Assistance for Geothermal Development in Chile | October 2016 | |
| C. Recipient Executed Trust Fund 1. Sustainable Land Management-GEF (P085621) | September 2014 |
Delivery date refers to the Board date in lending projects, to delivery to client in case of AAA and to Grant effective date in case of RETF. Technical assistance includes Reimbursable Advisory Services (RAS).
| Title | Products | Expected Delivery Date* |
|---|---|---|
| 1. Bank work program | A. Investment Loans 1. Chile 2nd Social Inclusion for Shared Prosperity DPL (P158738) 2. Chile - Health Sector Support Project (P161018) | July 2017 July 2017 |
| B. Technical Assistance 1. Technical Assistance for Geothermal Development in Chile | October 2016 | |
| C. Recipient Executed Trust Fund 1. Sustainable Land Management-GEF (P085621) | September 2014 |
Delivery date refers to the Board date in lending projects, to delivery to client in case of AAA and to Grant effective date in case of RETF. Technical assistance includes Reimbursable Advisory Services (RAS).
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.