Video transcript
Chile's growth has proven resilient over recent years and timely monetary policy tightening contributed to bringing inflation down.
Policy should now secure fiscal sustainability and foster productivity growth.
GDP is forecast to rise by 2.3% in 2025.
Chile’s public debt remains lower than the OECD average but has been rising.
Ensuring public debt remains below the debt ceiling and addressing spending needs require greater spending efficiency and mobilising tax revenues.
Productivity growth has slowed. Boosting digitalisation and innovation can reignite it.
Chile has one of the highest connectivity rates in Latin America.
However, it lags other OECD countries in several areas which hinder wider benefits of digitalisation.
To enhance digitalisation:
- Improve basic and digital skills
- Promote the adoption of digital tools by micro-, small and medium-sized enterprises.
- Simplify access to public research and development support for technological innovation.
Gender gaps have decreased in Chile, but further efforts are needed.
To foster women's employment:
- Expand access to high-quality child and elder care.
- Increase reserved paternity leave for fathers.
- Reduce gender stereotypes during the first years of education.
- Promote women in leadership roles.
Chile has massive renewable energy potential.
Meeting emissions targets requires strengthening environmental policies.
To lessen the impact of climate risks, it is necessary to strengthen risk assessment and government coordination, invest in resilient infrastructure, and ensure stable funding for prevention and emergencies.
To accelerate the green transition:
- Streamline permitting processes.
- Upgrade electricity transmission and port infrastructure.
- Increase carbon prices.