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Kast Taps Advisor to Boost Chile's Growth
7 Jan
Summary
- Jorge Quiroz tapped as finance minister to spur economic growth.
- Markets anticipate 4% growth, but critics question spending cuts.
- Peso strengthened amid positive economic signals and copper prices.
Chile's President-elect José Antonio Kast is set to appoint Jorge Quiroz, his chief economic advisor, as the next finance minister. This move signals a strong intention to accelerate economic activity in a nation that has seen slower growth in recent decades. Quiroz, an economist with a doctorate from Duke University, is expected to take office on March 11 and spearhead efforts to revive the country's economic performance.
Financial markets are responding positively to the prospect of Kast's government, with expectations of increased investment and a projected annual growth rate of 4%, a significant jump from the current 2.5%. The Chilean peso saw a notable strengthening, partly due to record prices for copper, the country's primary export. Quiroz's background as a businessman and his pragmatic approach are viewed favorably by market analysts.
Despite the optimism, some proposals, such as cutting $6 billion in public spending without eliminating social programs, face scrutiny and potential congressional challenges. Kast's administration will inherit an economy that is recovering from pandemic-induced imbalances, with improving inflation forecasts but persistent unemployment above 8% and rising public debt over the past decade.
