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Chile: Selected Issues
Author:
International Monetary Fund. Western Hemisphere Dept.
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2025: Issue 038
Language:
English
Publication Date:
05 Feb 2025
DOI:
https://doi.org/10.5089/9798229000475.002
ISBN:
9798229000475
ISSN:
1934-7685
Pages:
75
Keywords:
input-output linkage; housing wealth effect; growth slowdown; real estate sector; risk assessment; Pension spending; Exports; Mortgages; Loans; Global; Eastern Europe
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The 2024 Article IV Consultation analyzes that the Chilean economy is broadly balanced but modest potential growth has constrained increases in living standards and makes it difficult to address fiscal and social needs. Policy priorities are therefore mainly of structural nature. They include boosting productivity and employment as well as strengthening fiscal, external, and financial sector buffers—particularly in the context of a challenging global environment. Real gross domestic product is expected to expand by 2–2.5 percent in 2025, in line with its potential. Inflation is projected to return to the 3-percent target in early 2026, after the impact of the significant electricity tariff hikes between June 2024 and early 2025 subsides. External risks remain elevated. A cautious data dependent approach to the Expediting investment permit applications and environmental evaluations, fostering an environment for the development of new industries, facilitating R&D, and increasing female labor participation are vital for boosting potential growth.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund