CHILE’S economy could achieve higher growth by implementing structural reforms to improve investment efficiency, labor force participation, and public-private research and development collaboration, the International Monetary Fund said on Tuesday.
WHY IT’S IMPORTANT
Chile’s economic growth slowdown, from 6.2% annually in the 1990s to below 2% in the 2020s, has fueled debates over fiscal sustainability and social systems like pensions and university loans.
BY THE NUMBERS
Chile’s GDP per capita has grown from $8,200 in 1990 to $26,000 in 2025, but demographic trends, such as a working-age population growth of just 0.15% annually through 2035, and external headwinds could limit future annual economic growth to around 1.9%, the IMF estimates.
KEY QUOTE
“To address demographic challenges, Chile could stimulate labor participation, for example by improving the access to quality childcare that would enable more women to enter the labor force,“ the IMF said.
CONTEXT
Once Latin America’s fastest-growing economy, Chile now faces challenges other countries at similar income levels did not, such as an aging population and a less favorable global growth environment.
WHAT’S NEXT
The IMF recommends that Chile implement structural reforms, including passing a technology transfer bill, streamlining investment approvals, expanding childcare access to boost workforce participation and leveraging its critical mineral and renewable energy resources to drive future growth.
