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Economics

Leftist Leader Bucks Emerging-Market Trend by Balancing Budget

  • Chile is forecasting a budget shortfall of just 0.1% of GDP
  • Even skeptical analysts expect deficit to more than halve
Chile Expects Remarkable Turnaround | Gap between expected 2022 budget balance and 2021 figure

For all the talk of populism, Chile’s new left-wing government says it will pull off something no other major emerging-market will achieve this year -- a near balanced budget.

The latest forecast from the country’s budget office is for a full-year deficit worth 0.1% of gross domestic product, down from a whopping 7.7% in 2021 and 7.3% the year before. Analysts are skeptical, but even they see the shortfall dropping to 2.95%.