Chile to Grow 2.9 Percent

Chile’s economy will grow 2.9% in 2018 and 2019 as copper prices rebound and investment recovers gradually, the Organization for Economic Cooperation and Development said in a report published on Monday, Reuters reported. That represents an improvement on economic expansions of 1.5% and 1.7% in 2016 and 2017, respectively, when weak copper prices contributed to a deceleration in the South American country’s growth rate, according to the OECD. The report also projects that Chile’s fiscal deficit will fall to 1.9% of gross domestic product in 2018 and 1.7% in 2019, down from 2.8% in 2017. It recommends that to sustain growth, Chile should diversify its economy beyond activities related to natural resources. Inflation expectations in Chile remain well-anchored, meaning monetary policy is likely to remain accommodative in 2018, according to the OECD. The OECD report, presented by the organization’s secretary general Angel Gurria in Santiago, comes days before President-elect Sebastian Pinera, a conservative billionaire who has pledged to slash red tape and revive investment, is set to take office in the world’s No. 1 copper producer.