OECD and sixth retreat – El Mostrador

The continuously cited in our country OECD is an intergovernmental institution that brings together 36 countries which are committed to the market economy and democratic political systems.
The OECD is a forum where countries exchange experiences in public policies, best practices and promote recommendations aimed at promoting economic development and the well-being of the population in general.
Dialogue, consensus, analysis and comparison of information and data, evaluations and peer reviews are at the heart of this institution’s work. This organization is also one of the largest and most reliable sources in the fields of statistics and economic information, as well as social worldwide.
Its projections specifically on economic issues are very relevant internationally. The OECD maintained its projections for Chile’s growth over the next 2 years, with respect to its latest updates that were published in September.
Thus, the intergovernmental body maintained its estimate of product growth of 1.9% for the Chilean economy in 2022, and a fall of 0.5% for 2023. For 2024, meanwhile, it presented a positive growth forecast of 2.6%, it is worth remembering that all the previous ones are compared to the previous year, quite relevant data and to take into consideration.
These projections were justified by tighter financial conditions, withdrawal of support measures related to the pandemic and that the effect of inflation on the purchasing power of the population would slow consumption. On the other hand, higher interest rates and low business confidence would keep investment, as the agency defined it, “moderate.” On inflation, he stressed that it has begun to decline and would continue its downward trend during 2023, as the effects of the tightening of monetary policy on growth and inflation become visible, and will converge towards the Central Bank of Chile’s goal for 2024. It also states that monetary conditions should remain tight to ensure that inflation returns to the proposed target of around 3%.
It is striking, knowing that, in a high percentage, the inflation we observe is explained by internal components to our economy and, in particular, withdrawals from pension funds are an important part of this. We have observed inflationary figures that we did not see several decades ago and, remembering that this effect always punishes the poorest to a greater extent, how is it understood to promote a sixth legislative procedure for a new withdrawal? Apparently we are not able to appreciate the efforts that as a country we are making to return to low and stable inflation, let us think that sanity, in the end, will reign and we will all realize how relevant it is to return to the path that for four decades has driven our economic authority.

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Original source in Spanish