Chile : Staff Report for the 2014 Article IV Consultation.

Format:

Book

Government document

Author/Creator:

International Monetary Fund. Western Hemisphere Department.

Series:

IMF Staff Country Reports; Country Report ; No. 2014/218

IMF Staff Country Reports

Language:

English

Subjects (All):

Economic development--Chile.

Economic development.

Economic indicators--Chile.

Economic indicators.

Physical Description:

1 online resource (73 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2014.

Language Note:

English

Summary:

<p>KEY ISSUES<br>Politics: President Bachelet won the Presidential election on a platform to foster<br>inclusive growth and reduce inequality. Her government took office in March 2014 and is launching <br>an ambitious policy agenda that includes important reforms in several areas, including taxation, <br>education, productivity, and energy.<br>Outlook and risks: Chile’s global environment is shifting, with a dimmer outlook for its main <br>export, copper, and normalization of global monetary conditions. Growth has slowed markedly, <br>resulting in a modest output gap. The peso has depreciated, feeding into inflation. Staff projects <br>growth to bottom out in 2014 and then gradually recover. Key risks relate to a large and lasting <br>drop in copper prices and global financial volatility.<br>Policy mix: The freely floating peso is working as a shock absorber and will support the economic <br>recovery. The policy mix with broadly neutral fiscal and accommodative monetary policy is <br>appropriate. Room for further monetary easing has narrowed but space remains if domestic demand <br>flounders, so long as inflation expectations remain well anchored. On fiscal, given the strong <br>public finances, automatic stabilizers should be allowed to operate unimpeded and there is space <br>for stimuli in the event of a major downturn. The commitment to close the structural fiscal deficit <br>by 2018 is appropriate and should be phased in a way that avoids undue drag on the recovery. Should <br>risks materialize, the freely floating currency is the first line of defense.<br>Growth and equity reforms: Achieving strong growth while reducing inequality will require <br>structural reforms. The authorities’ agenda focuses on the right areas but many details remain work <br>in progress. Clarity on the details, timetables, and prioritization will reduce uncertainty and the <br>risk of delays.<br>Financial stability: Risks to financial stability appear contained, but it will be important to <br>push through with regulatory reforms underway, including initiatives currently in Congress. Further <br>effort will be needed to close regulatory gaps, in particular bank<br>capital requirements, relative to international benchmarks.<br></p>.

Contents:

""Cover""; ""CONTENTS""; ""CONTEXT""; ""CURRENT CONDITIONS""; ""OUTLOOK AND RISKS""; ""POLICY IMPLICATIONS""; ""A. Policy mix""; ""B. Fostering strong and inclusive growth""; ""C. Reinforcing financial stability""; ""D. Enhancing the fiscal framework""; ""STAFF APPRAISAL""; ""BOXES""; ""1. Spillover Transmission Channels and Effects""; ""2. Tax Reform""; ""3. Electricity Sector in Chile""; ""FIGURES""; ""1. Past Growth Performance and Challenges Ahead""; ""2. Financial Market Developments""; ""3. Cyclical Position""; ""4. Monetary Policy and Inflation""

""5. Fiscal Policy and Public Finances""""6. External Stability""; ""7. Macro-Financial Stability""; ""8. Real Estate Developments""; ""9. Spillovers and Exposures""; ""TABLES""; ""1. Selected Social and Economic Indicators""; ""2. Summary Operations of the Central Government""; ""3. Summary Operations of the Public Sector""; ""4. Balance of Payments""; ""5. Monetary Survey""; ""6. Medium-Term Framework""; ""7. Indicators of External Vulnerability""; ""ANNEXES""; ""I. Past Fund Advice""; ""II. A Closer Look at Investment""; ""III. Recent Developments in Corporate Debt""

""IV. Risk Assessment Matrix""""V. 2011 FSAP Update: Status of Main Recommendations""; ""VI. Debt Sustainability Analysis""; ""CONTENTS""; ""FUND RELATIONS""; ""STATISTICAL ISSUES""; ""WORLD BANK�FUND COUNTRY-LEVEL WORK PROGRAM UNDER JMAP""

Notes:

Description based upon print version of record.

Description based on online resource; title from PDF cover (ebrary, viewed August 27, 2014).

ISBN:

9781498353557

149835355X

9781498310970

1498310974

9781498376419

149837641X

OCLC:

888748820