Minister Andrés Velasco on Chile's Economic Prospects

Chile's Finance Minister, Andrés Velasco, visited the OECD on January 28 and 29, 2008. Following meetings with the OECD Secretary General and other OECD officials, the Minister participated in a breakfast meeting with top investors and Senior officials of European and Asian companies investing in Latin America. During the breakfast, hosted by the OECD Development Centre, Minister Velasco made a presentation on Chile's recent economic performance and future prospects.

OECD Secretary General Gurría and
Chile's Finance Minister Velasco

With an annual growth rate of 5.4% since 1990, total national income has almost trebled in Chile. The country's macroeconomic management has been rated among the best in the world, its S&P rating has been upgraded to A+, and its spreads have remained considerably lower than those of comparable countries. According to Minister Velasco, in a climate of global economic uncertainty Chile’s economy is more resilient than ever before as a result of counter-cyclical fiscal and monetary policies, falling public debt and a solid institutional framework. Despite the country’s positive economic outlook, securing energy supply, controlling inflationary pressures and completing pension and education reform remain Chile’s main challenges in the short and medium run.