Chile : Request for an Arrangement Under the Flexible Credit Line-Press Release; Staff Report; and Staff Supplement


International Monetary Fund. Western Hemisphere Dept.[1]

Publication Date:

May 29, 2020

Electronic Access:

Free Download[2].

Use the free Adobe Acrobat Reader[3] to view this PDF file


Chile’s very strong fundamentals, policy frameworks, and macroeconomic
track record have been instrumental in helping the economy absorb the impact of
recent shocks, including the social unrest in late 2019. Over the past three decades,
Chile has been enjoying a very solid macroeconomic performance. The robust growth
has resulted in one of the largest reductions in poverty and highest incomes per capita
in the region. Owing to the fiscal rule and the long record of prudent fiscal policy,
public debt is low by international standards and the country enjoys steady sovereign
access to capital markets at favorable terms. The credible inflation-targeting framework
has delivered low and stable inflation with well-anchored inflation expectations. The
sound financial system is supported by an effective regulatory and supervisory
framework. International reserves are at a comfortable level. The authorities remain fully
committed to maintaining very strong policies and policy frameworks. Despite showing
one of the highest levels of resilience among emerging market economies, Chile’s open
economy remains exposed to substantial external risks, such as those stemming from a
prolonged Covid-19 outbreak.

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