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Country snapshots 2017-18: Chile

Economic growth moderated in 2016, reflecting weaker commodity prices and external demand, while consumer and business confidence have been fragile. Growth is projected to edge up in 2017 and 2018 as a somewhat stronger global economy underpins a gradual recovery in investment and private consumption. As the effects of past currency depreciation wear off, inflation will fall into the central bank’s tolerance range. 

Monetary policy remains supportive, with the policy interest rate at 3.5%. Recent measures to boost productivity and strengthen investment may help to diversify the economy and support more sustainable growth. However, more needs to be done to address skill mismatches and tackle inequality.

GDP growth

2013

Current prices CLP billion

2016

  

2017

% real change

2018

  

137 229.6 1.7 2.5 2.6

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©OECD Observer No 308 Q4 2016