CHILE
Analysts
Robert Funk
Former President, Political Science Association
Igal Magendzo
Former Manager of Macro Analysis, Central Bank
Andrés Velasco
Former Finance MinisterDatabanks
Recent Country Insights
The Mega Bill nears the finish line
CHILE · Report · 31 Jul 2026
Chile’s Reconstruction and Economic and Social Development Bill (also known as the Mega Bill) is now approaching the final stage of the legislative process. Combining tax cuts, employment subsidies and regulatory reform, the bill has survived nearly every legislative hurdle pretty much intact. No...
Omnibus closer to approval, but further from working its magic
CHILE · Report · 06 Jul 2026
Recent data points to further weakness in domestic activity. Mining and manufacturing explained most of the contraction, but the pace of expansion remained weak, even when these sectors are excluded. Consumption-related indicators were somewhat more resilient. The picture is increasingly gloomy, ...
How does MEPCO work? A brief guide to understanding how fuel prices are stabilized
CHILE · Report · 10 Jun 2026
The Fuel Price Stabilization Mechanism (MEPCO), as its name suggests, is a mechanism that seeks to smooth sharp changes in consumer fuel prices. In principle, it does not seek to eliminate increases or declines, but rather to ensure that they reach the market gradually. Its main objective is t...
Kast’s State of the Union: Fiscal Stress
CHILE · In Brief · 02 Jun 2026
Three months into office, President José Antonio Kast’s first June 1 “State of the Union” should have been a victory lap. Instead, it was an attempt to reset the government’s political narrative. The speech clarified the administration’s priorities on security, fiscal correction, and growth. It a...
A hard day's start
CHILE · Report · 01 Jun 2026
We maintain our 1.5% GDP growth forecast for 2026, with risks still tilted to the downside. The latest activity data point to an unfavorable turn, and national accounts came in weaker than suggested by the IMACEC. Some of the weaknesses reflect one-time supply side events, but these do not fully ...
Kast on the Defensive
CHILE · In Brief · 20 May 2026
President José Antonio Kast entered office two months ago with a very clear remit: restore security and regain control of migration. He promised that after years of political volatility, Chile would get order. Perhaps even become boring. Yesterday’s departure of Security Minister Trinidad Steiner...
Navigating the shock, waiting for momentum
CHILE · Report · 29 Apr 2026
GDP decelerated sharply in H2 2025, and this weakness extended into early 2026. Growth would need to gain significant momentum in the coming months to reach an average of 2% for 2026. In addition to weak data for the first months of the year, the economy is facing a negative income shock from hig...
Kast's Big Beautiful Bill
CHILE · In Brief · 23 Apr 2026
President José Antonio Kast has framed his National Reconstruction Plan as a response to the three crises he claims Chile is facing: economic, political and security. Kast knows that of the three, it is security that has been uppermost in the electorate’s mind. Yet the Plan appears to be centered...
Fuel Prices Increase
CHILE · In Brief · 24 Mar 2026
Yesterday, the government announced measures that will take effect this Thursday, March 26, increasing gasoline prices at the pump by 34% and diesel prices by 70%. The stated objective is to prevent a short-term decline in fiscal revenues resulting from the reduction in the specific fuel tax unde...