Country Economic Forecasts - Chile
Gabriel Boric won election as president of Chile, beating his far-right opponent Jose Antonio Kast resoundingly in the election runoff. But market reaction to Boric’s victory speech, in which he pledged to adopt climate-friendly policies and scrap the pension system, was equally emphatic, with investors pummeling Chilean assets. Given Chile’s split congress, we expect Boric to lean towards a moderate government, balancing social demands against market conditions. The economy is also likely to prove a challenge over the next two years, as Chile’s economic overheating will require abrupt policy tightening, which in turn will curb Boric’s ability to fulfil his election mandate.
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