Chile seeks to recover its economy through liquidity injection

Chile has one of the strongest economies in Latin America. However, it does not escape global financial, social and political instability. In order to meet these challenges, the Executive of Sebastián Piñera announced that he will raise the injection of liquidity to 3 billion dollars through the Economic Acceleration Agenda launched last June.

The Chilean Government seeks to revive its economy and deal with the effects of the trade war between China and the United States through a new package of measures focused mainly on liquidity injection, with fiscal expenses of 571 million dollars until 2020.

The Economic Acceleration Agenda, announced in June, consists of “a revival plan” launched by Piñera, which provides a total of “200 initiatives to improve airports, roads and ports, housing subsidies, purchase of medical equipment, investments in rural drinking water and promotion of innovation and entrepreneurship.”

Felipe Larraín, Minister of Finance, stressed during the presentation of the plan on Monday, that Chile does not escape the complex global economic situation and added: “This will improve future productive capacity, not just current activity.”

The economist anticipated that for the remainder of 2019 the country will have a growth of between 3.5% and 3%, although ECLAC estimates indicate that it will be 2.8%.

The urgent implementation of the third stage of the Agenda was approved by President Piñera, not only as a way to protect the Chilean economy from the ravages of the commercial war, “but to generate conditions that allow Chile to recover a high economic growth rate and sustained.”

To achieve its purpose, Larraín indicated that they have a joint effort of the ministers of Economy, Public Works, Agriculture, Housing, Social Development and Health, with reallocation resources and savings spaces generated by the Treasury in the last two years.

M.Pino

Source: El País