Chile Debt to Top Prudent Level by 2029, Watchdog Warns
Chile's independent fiscal council projects gross debt will exceed 45% of GDP from 2029, even with copper at record highs. The post Chile Debt to Top Prudent Level by 2029, Watchdog Warns appeared first on The Rio Times .
Chile's independent fiscal council, the Consejo Fiscal Autonomo (CFA), warns that the country's gross debt will exceed 45% of GDP by 2029, even with copper prices at record highs. The CFA, an advisory body tasked with monitoring fiscal policy, released its 24th structural balance report on August 17, projecting debt to reach 45.6% in 2029 and 46.7% in 2032.
Despite copper prices hitting a record US$6.73 per pound, the CFA's report does not attribute the warning to the "copper price euphoria". The council's findings suggest that increased copper revenues are insufficient to offset structural spending commitments, leaving Chile with limited fiscal space to respond to future shocks. The report raises concerns about potential rating downgrades and higher borrowing costs for the government, as well as possible spillover effects on neighboring Latin American economies.
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