Chile : 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Chile

Chile’s fundamentals and policy framework remain strong. However, economic prospects are being shaped by lower dynamism in key trading partners, permanently lower copper prices, slower trend growth, and mounting social demands for inclusive growth. Important reforms are underway to lift growth and reduce inequality, but they inevitably generate transition costs. Against this background, staff’s recommendations aim to balance trade-offs between growth, stability, and social objectives, while assessing the macroeconomic policy mix during this challenging transition.