READ full country note (PDF)
Growth is projected to accelerate to around 3.6% in the coming years supported by an improving external outlook and favourable financial conditions. Real wages will grow as salaried employment recovers, lifting private consumption and reducing income disparities. Increasing aggregate demand, a supportive monetary stance and a stable exchange rate will raise inflation.
Government spending and debt have increased but the planned fiscal consolidation should be gradual enough to leave room for needed investments in health, education and infrastructure. Streamlining licencing and regulations, raising public support for R&D and improving infrastructure would boost stalled productivity. Building on recent reforms in the education system, developing apprenticeships, and assuring relevant skills at all levels of education and activation policies, would boost productivity and inclusiveness.
Economic Survey of Chile (survey page)