Chile: the president-elect gives a reality check to investors

President-elect Gabriel borik warned that the boom in consumer spending in Chile is unsustainable and that the Government finances are under pressure, giving a reality check in one of the world’s fastest growing economies.

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The economic growth must be investment-driven, while protecting the environment, Boric said today at a business event in Santiago.

Photos of Gabriel Boric: EuropaPress

Increase government revenue through tax reform and, at the same time, offer investors legal guarantees to help that economic expansion lasts longer and solve social ills, he added.

Our current status quo then slows down economic development and deepens social unrest.“, Boric pointed out. “If we do not advance with material solutions, we will not have solved the causes of the social explosion”.

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Chile’s economy grew by nearly 12% last year, a record for the South American nation, according to the central bank, which it expects growth to slow to 2% this year.

Monetary policymakers pthey will probably raise the reference rate again this month, extending hikes to a total of 350 basis points since July in the midst of annual inflation that exceeds the goal.

The model country of the region accepts its crisis in front of the world

Former student leader Boric assume the presidency at 36 years old in March, after promising greater equality in a nation that is one of the most prosperous in Latin America and one of the favorites of the global financial market.

Investors are waiting for him to announce his cabinet within a week.

Boosting productivity and recovering formal jobs, especially for women and youth, represent top priorities, he said today.

The changes of the incoming Administration will be gradual and they will be implemented with fiscal responsibility, he said, committing to reduce the structural deficit as of 2023.

The new government knows that alliances with the private sector will be key to boost investments, according to the incoming head of state. Boric said that his team will always be open to dialogue with different segments of society.

His speech comes a day after the current Administration awarded controversial lithium contracts. The moment drew criticism from both opposition groups and Boric, who told the media on Wednesday that the decision resembles “those laws that bind you at the last minute when a government is about to end.”

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Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Phone : +1 281-333-2229

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