Mumbai, July 7 -- The Executive Board of the International Monetary Fund (IMF) completed the Article IV Consultation for Chile. It noted that economic activity has remained robust in the country, with GDP growing at 2.5 percent in 2025 driven by strong non-mining domestic demand. Inflation declined to the central bank's target in early 2026 but has since increased due to higher energy prices associated with the conflict in the Middle East. Fiscal deficits have persisted due to revenue underperformance, but public debt remains moderate. The financial system is sound overall, although vulnerabilities persist in construction and real estate.

GDP growth is expected to soften to 1.8 percent in 2026, rising to 2.6 percent in 2027 supported by hi...