Chile is "strong" for economic recovery in 2021, says Allamand

On Spain, he said that Chile expects his support to complete the modernisation of the Association Agreement with the European Union
Atalayar_ Chile recuperación crisis Covid

REUTERS/RODRIGO GARRIDO  -   The Chilean Senate

Chile has the "macroeconomic and fiscal soundness" to ensure recovery in 2021 after the effects of the covid-19 pandemic on the country, whose Gross Domestic Product (GDP) will fall by around 6 percent this year, according to Foreign Minister Andrés Allamand.

"We have put aside resources to be able to inject those that are necessary to underpin the recovery that we hope will come next year," the Chilean foreign minister, who is visiting Spain, told EFE.

Chile has "well earned prestige in terms of its good management of public finances, he said; we have debt levels that, although they have grown, are still at levels much lower than those of a very significant number of countries".

He noted that the Covid-19 has hit the Chilean economy in the same way as those of the world. The reduction in Chilean GDP forecast for 2020 is high, "but less than that which will take place in other countries in the region," he said.

In addition, the government has made "an enormous fiscal effort in terms of helping families in different ways".

In this regard, he recalled the programme of an emergency family income for the most vulnerable households, policies to maintain employment while economic recovery arrives and, simultaneously, a set of programmes aimed at SMEs, which are the most active companies in generating jobs in Chile.

"All these policies have worked reasonably well, says Allamand, and expectations for next year place Chile as one of the countries expected to have the fastest recovery, which is good news".

Last Monday, the Ibero-American foreign ministers requested "urgent financing" from the international community and multilateral development organisations to address the effects of the pandemic in the region.

In the Chilean minister's opinion, there has to be a "global reaction"; the help of international organisations is one of the elements that "should trigger recovery", and he therefore hoped that "all of this could flow as quickly as possible".

"The problem, he admitted, is that, in the end, all countries, all blocks, have similar problems".

On Spain, he said that Chile hopes for its support to complete the modernisation of the Association Agreement with the European Union and "a strengthening of the rich and dense bilateral relationship".