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New Chile lockdown will add to wider uncertainties

Friday, June 18, 2021


At the same time, a new Central Bank report suggests that, despite a sharp liquidity-driven economic rebound this year, the country faces a lean medium-term outlook.


  • Lack of compliance with lockdowns has left the government with few tools, other than vaccination, for controlling the pandemic.
  • Preliminary estimates suggest that fiscal spending will rise by a massive 25% in 2021.
  • Monetary policy will face the challenge of balancing inflation risks against the lagging recovery of employment.

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