Chile obliged to loosen the purse strings as protests continue
Plans to cut debt are scrapped in favour of at least $1.5bn a year in extra social spending, maintaining its reputation for fiscal prudence in Latin America
27 November 2019 - 15:11
Santiago — Chile is gambling its status as a pro-market poster child as the government scraps plans to cut debt in favour of at least $1.5bn a year in additional social spending to appease protesters.
With violent demonstrations entering their second month, officials are now planning a wider fiscal deficit target in 2020 that could grow even larger in coming years as citizens demand more generous wages and pensions, as well as a new constitution. That move may fan further increases in public debt that’s already risen to 26% of GDP from 5.2% in 2008...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.