Chile's economy seen growing nearly 2% in 2024, IMF says

Macroeconomic imbalances in Chile built during the pandemic have largely been resolved, the IMF said, supported by tighter policies rolled out in 2021 and 2022. The monetary fund added that the closure of the constitutional reform process in Chile is set to reduce near-term and medium-term uncertainty domestically, after two referendums to replace the previous dictatorship-era text failed to pass.

Economic growth in Chile is expected to grow nearly 2% in 2024, the International Monetary Fund (IMF) said on Tuesday, and is seen growing around 2% to 2.5% in the medium term.

Inflation in the South American country is also projected to converge to its 3% target this year, the IMF added in a statement following the conclusion of a consultation with Chile. Chile's central bank has deployed robust policies leading to the decline in inflation, the IMF said, though it stressed that the pace of further monetary easing should remain data dependent.

The nation's central bank cut its benchmark interest rate

to 7.25% in January, down from a cycle-high of 11.25% reached in late 2022. Macroeconomic imbalances in Chile built during the pandemic have largely been resolved, the IMF said, supported by tighter policies rolled out in 2021 and 2022.

The monetary fund added that the closure of the constitutional reform process in Chile is set to reduce near-term and medium-term uncertainty domestically, after two referendums to replace the previous dictatorship-era text failed to pass.

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