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Amid an uncertain external outlook, Chile’s economy is adjusting after the extraordinary expansion of 2021. Real GDP growth slowed down to 2.4 percent in 2022 as consumption normalized amid a sharp fiscal and monetary policy contraction.

Economic adjustment is expected to continue in the first half of 2023 led by a further drop in consumption amid contractionary policies, depleted household liquidity and a weakening labor market. The economy is projected to recover gradually in the second half of the year leading to an annual decline of 0.7 percent for 2023, driven partially by a negative base effect from 2022.

Inflation could remain high in the short term given some inertia but is projected to converge to target by end-2024 amid a negative output gap and receding cost pressures.

Amid high inflation and stagnation, poverty (US$6.85 a day PPP) is projected to remain at around 11.5 percent and the Gini coefficient at 0.46 in 2023, and they are not expected to return to pre-pandemic levels in the medium term.

Medium-term prospects will be shaped by the capacity to generate more inclusive, productivity-driven growth while preserving sound macroeconomic fundamentals.

Last Updated: Apr 03, 2023


Chile: Commitments by Fiscal Year (in millions of dollars)*

*Amounts include IBRD and IDA commitments
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CHILE +562 239 82400
Apoquindo 2929, 1300-A, Las Condes, Santiago
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1818 H Street NW, Washington, DC 20433