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Sound macroeconomic policies and the commodity boom have helped Chile record an enviable period of economic growth and job creation. Further reforms are needed to make the labour market more inclusive and growth greener, while more could be done to support innovation and entrepreneurship, according to the latest OECD Economic Survey of Chile.
Chile has sound macroeconomic practices that have won the confidence of investors, and these must now be cast within a context of long-term public policies, said OECD Secretary-General.
Chile has made major gains in prosperity. Continued reforms to labour markets will help growth to be shared more equally. Ensuring that economic gains are sustainable will require sustained efforts to foster entrepreneurship and innovation.
Chile ha avanzado hacia una mayor prosperidad, aunque más reformas en el mercado laboral permitirán un crecimiento más equitativo. Para que lo ya logrado sea sostenible, es necesario un mayor esfuerzo en promover la innovación
The global scenario is less benign for the region due to a downturn in global trade, a decline in commodity prices and increased uncertainty surrounding external financing, says the new Latin American Economic Outlook.
After a decade of relatively strong growth, Latin America is facing headwinds associated with declining trade, a moderation in commodity prices and increasing uncertainty over external financial conditions, according to the latest Latin American Economic Outlook jointly produced by the OECD Development Centre, the UN Economic Commission for Latin America and the Caribbean (UN ECLAC) and CAF - Development Bank of Latin America.
The OECD welcomes Chile’s plan to improve the way it calculates the Consumer Price Index (CPI). The plan focuses primarily on proposals by the Chilean Statistical Office (INE) to better capture price changes for clothes and footwear, to ensure that the CPI accurately reflects inflation.
Instead of resorting to trade measures such as export restrictions, Chile manages its minerals sector through a combination of balanced taxation, stable investment measures, good management of tax revenue, exchange rate policy and initiatives aimed at producing a multiplier effect of economy-wide development, according to this study.
Notwithstanding impressive progress, poverty and inequality remain high in Chile in OECD comparison, and the tax-benefit system does little to improve on this.
Country Notes from OECD Economic Policy Reforms: Going for growth 2011 presenting OECD recommendations for structural reform priorities for individual countries.