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Chile Set to Lose Crown as Only Net Creditor in the Americas

  • Most austere budget in 14 years won’t narrow fiscal deficit
  • Chile to post second-biggst budget gap in 37 years in 2017
Updated on

Chile’s most austere budget in 14 years won’t prevent the country losing its bragging rights as the only net creditor in the Americas in 2017.

The budget gap will widen to 3.3 percent of gross domestic product in 2017 from about 3.1 percent this year, Finance Minister Rodrigo Valdes told lawmakers in Santiago on Monday. That is the second biggest shortfall since the country returned to democracy 36 years ago and enough to push the government’s debts above its savings, according to the Finance Ministry.