## IMF Staff Concludes Visit to Chile

_IMF News, March 28, 2022_

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**Canonical URL:** [IMF Staff Concludes Visit to Chile](https://www.imf.org/en/news/articles/2022/03/28/pr2294-chile-imf-staff-concludes-visit-to-chile)

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## Bibliographic details
- Published: March 28, 2022

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### Mission purpose and context
- An IMF mission led by Ana Corbacho visited Santiago, Chile, during March 21-25, 2022, to discuss recent economic developments, the COVID-19 pandemic, the war in Ukraine, and implications for Chile’s policy priorities.
- End-of-Mission press releases convey preliminary findings after a visit; the views are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board.
- This mission will not result in a Board discussion.

### Major findings on the economy
- Chile’s recovery is well underway and economic activity exceeds pre-pandemic levels.
- GDP developments:
  - GDP declined by 6 percent in 2020.
  - GDP rebounded by 11.7 percent in 2021, buoyed by a large and coordinated policy response, widespread vaccination, and high copper prices.
- Inflation and expectations:
  - Inflation reached 7.8 percent in February.
  - Two-year inflation expectations edged up to 3.7 percent.
- Monetary policy:
  - The central bank has rapidly increased the monetary policy rate in response to inflationary pressures.
- Fiscal stance:
  - The 2022 approved budget envisages phasing out the COVID-19 fiscal stimulus measures and rebuilding fiscal buffers.
  - As the recovery takes hold, the government is embarking on fiscal consolidation guided by the fiscal rule.

### Policy recommendations and priorities
- Continue removing macroeconomic stimulus to help mitigate risks and inflationary pressures.
- Fiscal policy should continue providing targeted support to the most vulnerable, given lagging job recovery in certain sectors and higher global food and fuel prices.
- Maintain macroeconomic stability and fiscal sustainability while pursuing a far-reaching reform agenda to tackle inequality, protect the most vulnerable, and foster a green economy.

### Risks and resilience
- Global risks and uncertainty are elevated, including from the war in Ukraine and its global ramifications.
- Specific risk channels cited:
  - Rising global food and fuel prices.
  - Further supply chain disruptions.
  - Sharply tighter global financial conditions.
  - An adverse turn of the pandemic.
- Offsetting strengths:
  - Chile benefits from high copper prices.
  - A sustained track record of very strong policies and institutional frameworks, and relatively low public debt enhance Chile’s resilience and capacity to respond to shocks.

### Mission closing statement
- The IMF mission thanked the authorities for their hospitality and fruitful discussions and looks forward to continuing close cooperation with Chile in the period ahead.

*IMF Communications Department — Press Release No. 22/94, March 28, 2022*

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## References

- [Chile and the IMF](http://www.imf.org/external/country/CHL/index.htm)
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_Source: https://www.imf.org/en/news/articles/2022/03/28/pr2294-chile-imf-staff-concludes-visit-to-chile_