The article begins by discussing the impact of Donald Trump's return to the White House on the global economy. It mentions a trade war initiated by Trump, causing global economic chaos and jeopardizing markets. Despite some moderate signals from Trump, the report indicates that American assets still face exceptional risks due to modern trade policy changes.
Interestingly, the article notes that Chile has not yet felt a significant negative impact. The IPSA (the benchmark index of the Santiago Stock Exchange) continues to break records, and optimism prevails regarding the impact of pension reforms on the financial market. Moody's reaffirmed Chile's credit rating, praising its macroeconomic institutions.
Finance Minister Mario Marcel's visit to Washington is detailed. He referred to Trump's tariff war as a contractionary shock, highlighting that this is the third significant external shock Chile faced in 15 years. Despite the challenges, Marcel emphasized Chile's robust macroeconomic policies and stated that drastic fiscal action is not immediately necessary. He also stressed the importance of the Free Trade Agreement with the United States in navigating the trade disputes.
The article discusses the failures of casino licenses awarded in 2016, citing excessively high requirements and the overall poor design of the policy. The article describes how the subsequent licenses were unfulfilled, leading to significant financial losses for several companies and leaving municipalities with decreased revenue.
The article cites a study by the Centro de Estudios Públicos (CEP) indicating that bureaucracy and regulatory hurdles cost Chile 7.3% of its GDP, approximately US$20 billion. This figure highlights the substantial economic losses due to slow permits and authorizations, hindering growth and investment.
The article also covers the complexities faced by Chile's Finance Minister Mario Marcel, including the abandonment of a tax reform project and challenges in meeting fiscal targets. Additionally, it mentions the FMI's (International Monetary Fund) controversial involvement in Argentina's electoral process and the tensions around Argentina's new US$20 billion credit from the FMI.