IMF: “The constitutional process can put Chile as a leader in the region”

Much has been said about the economic consequences that a constituent process in Chile, especially after social outbreak Y the coronavirus pandemic, but for him IMF it could open a door for “the country to be a leader in the region.”

According Alexander Werner, director for the Western Hemisphere of the International Monetary Fund, “This process opens the door for Chile to continue being the region’s leader in the economic sphere“.

In the presentation of report “Persistence of pandemic clouds recovery”, Werner pointed out that a “new stage in which the main elements are maintained that generated the Chilean success, it can also be complemented with a social coverage agenda, with more progressive public finances “.

But it can also run great risks, since it can opt “for the establishment of a multiplicity of social policies without macroeconomic support”, moving the country to an economy “where fiscal and financial risks are higher.”

In any case, for Werner “the period that opens after the plebiscite can be a period where the margins of uncertainty gradually shrink.”

The IMF’s economic projections for the post-pandemic in Latin America and the Caribbean:

IMF Werner: For LAC, a real GDP contraction of 8.1% is projected in 2020, and growth of 3.6% in 2021. In most countries, GDP will not return to pre-pandemic levels until 2023, due to the lasting economic consequences of the crisis. https://t.co/sIWGVYQhDx pic.twitter.com/xRF1hfSERg

– IMF (@FMInoticias) October 22, 2020