Independent fiscal institutions are key in supporting well-designed fiscal frameworks that ensure long-term sustainability of public finances and adequate fiscal space to meet country needs. The Autonomous Fiscal Council (Consejo Fiscal Autónomo, CFA) is Chile’s independent fiscal institution tasked with contributing to the responsible management of the central government’s fiscal policy. While still relatively young as it started operating in June 2019, the CFA has already established itself as a respected institution relying on a wide range of analytical tools. In the current context, marked by a sharp increase of public debt, it is key to ensure that the models and tools used by the CFA remains “fit-for-purpose” and aligned with international best practices and standards. This report presents advice on how the CFA can further strengthen its models and tools. The report is the result of the work of an interdisciplinary OECD team bringing together expertise on country analysis, macroeconomic analysis and policy advice from across the Economics Department.
The quality of life of Chileans improved significantly over the last decades, supported by a stable macroeconomic framework, bold structural reforms, such as trade and investment liberalisation, and buoyant natural-resource sectors. The quality of life approaches the OECD average along some dimensions of well-being -- notably jobs and earnings, worklife balance, health and subjective well-being.