Chile: focus on reducing inequality to strengthen social and economic recovery from COVID-19
04/02/2021 - Chile has been plunged into recession by the double shock of the late-2019 social protests and the ongoing COVID-19 crisis. Sound public finances have enabled bold stimulus action to support the economy, yet risks remain. Once the health crisis is under control, and the recovery well underway, reforms should focus foremost on boosting job creation and making growth work for all, according to a new OECD report.
The latest
OECD Economic Survey of Chile sees the economy recovering gradually over the next two years, with activity back at pre-pandemic levels around late 2022. The Survey projects GDP growth at 4.2% in 2021 and 3.0% in 2022, after a drop of 6.0% in 2020, though it notes that the evolution of the pandemic remains a major risk. Any resurgence of social conflict could also dampen the pace of recovery, as could political uncertainty over upcoming elections and an on