LatinNews Daily - 27 November 2024

*The International Monetary Fund (IMF) has concluded an Article IV mission to Chile, releasing a statement in which it notes that “the economy’s imbalances have largely been resolved” but also emphasises that “a boost in Chile’s growth is urgently needed”. The IMF predicts GDP growth of 2.3% in 2024, due to a strong performance by mining and service exports, and of between 2.0% and 2.5% in 2025, when it expects a recovery in domestic demand. However, it highlights that “the recovery has been uneven across industries, the labour market is lagging, and inflationary pressure have not yet fully abated”. Inflation is not predicted to fall below the 3.0% target until early 2026, mostly due to a steep rise in electricity tariffs between June 2024 and February 2025. The IMF calls for structural policies aimed at “boosting medium-term growth and employment, strengthening fiscal, financial sector and international reserve buffers particularly in the context of a challenging global environment, and further reducing inequality”.