Chile: The 10 questions about fiscal policy that investors should have in mind

Summary

In this Economic Watch, we answer a list of fiscal policy questions that we consider to be essential for an investor who is following the Chilean economy. For example, we estimate the impact on the fiscal revenues that will have the new macro scenario recently published by the Central Bank; we analyze potential sources of funding for these lower revenues and the effect on market variables that could generate the decision chosen by the authority. In addition, we evaluate scenarios for long-term variables that soon will be provided by experts (potential GDP and copper price) and we quantified its impact on fiscal revenues next year, when will counteract higher revenues to be obtained from the tax reform.

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