Chile: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Chile
IMF Staff Country Reports, April 23, 2021
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- Chile: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Chile
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Bibliographic details
- Published: April 23, 2021
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513572895.002
Economic impact and recovery
- The Chilean economy was hit by the pandemic while recovering from the social unrest in late 2019, requiring substantial adjustment of economic policies and the appropriate use of existing policy buffers.
- Following a sharp decline in mid-2020, economic activity started recovering in 2020H2 in the wake of ample policy stimulus.
- The current account balance has improved amid a sharp drop in imports and relatively resilient exports.
Inflation and monetary framework
- Inflation remains near the policy target, with inflation expectations anchored.
- Monetary policy remains guided by the inflation-targeting framework.
Fiscal policy and public finances
- Fiscal policy remains guided by the structural fiscal balance rule.
- The report highlights the need for substantial adjustment of economic policies and appropriate use of existing policy buffers in response to the shock.
Risks, political context, and timetable
- Beyond pandemic-related risks, uncertainty stems from a series of elections and the outcome of a New Constitution process—scheduled to finish in mid-2022—which are expected to shape the public discourse and influence the policy agenda.
Subjects and keywords
- Subject: COVID-19, Credit, Expenditure, Fiscal policy, Fiscal stance, Health, International organization, Monetary policy, Money, Pension spending, Public debt
- Keywords: COVID-19, Credit, Fiscal stance, Global, I. Policy response, inflation expectation, liability positions vis-à-vis nonresident, money market rate, Pension spending, policy target
Content in this bundle
- 1chlea2021001