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Contents | Executive summary | How to obtain this publication | Additional info
The following OECD assessment and recommendations summarise chapter 1 of the Economic survey of Chile published on 26 November 2007.
Contents
Chile’s overarching policy challenge continues to be to reduce its income gap relative to the OECD area at a more sustained pace
Chile remains a strong performer, even in relation to the most successful comparator countries in the OECD area. Activity lost some vigour in 2006, predominantly because of one off factors, rather than structural weaknesses, but rebounded in earnest in the first half of 2007. Macroeconomic management continues to be exemplary, delivering falling public indebtedness, growth around potential and low, albeit recently rising, inflation. The rules based policy framework – combining instruments for saving revenue windfalls related to business and copper price cycles with inflation targeting and exchange rate flexibility – is serving the economy well in a period of unprecedented strength in the price of copper. As a result, economic activity is now much more resilient to the vagaries of commodity prices than in previous cycles. The authorities intend to build on these achievements with an ambitious structural reform programme, ranging from regulatory matters to a strengthening of social protection, including through much needed further enhancements to social security. The OECD concurs with the authorities’ view that a combination of sound macroeconomic policies and additional progress in structural reform is essential for raising and maintaining the economy’s growth potential over the longer term so as to achieve a faster reduction in the income gap that still exists between Chile and the OECD area. Sustaining high growth in the future is also important for a further reduction in poverty and can do much to improve Chile’s still very skewed income distribution.
Decomposition of GDP growth, 1987-2006
Contributions in per cent, year on year
Source: Central Bank of Chile and OECD calculations.
How to obtain this publication
The Policy Brief (pdf format) can be downloaded in English or in Spanish. It contains the OECD assessment and recommendations. The complete edition of the Economic survey of Chile 2007 is available from:
- SourceOECD for subscribing institutions and many libraries
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OLISnet, under "Publication Locator", for government officials with accounts ( subscribe)
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Additional information
For further information please contact the Chile Desk at the OECD Economics Department at eco.survey@oecd.org. The OECD Secretariat's report was prepared by Luiz de Mello and Diego Moccero under the supervision of Peter Jarrett. Research assistance was provided by Anne Legendre.
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