LatAm Daily | Lower fiscal deficit in Chile but tight room for fiscal manoeuvre

Summary

Surprises in non-cyclical revenues raised government revenues leading to a lower than expected fiscal deficit. Structural balance reached a deficit of 0.3% of GDP, though this result deteriorates if non-recurrent incomes are included. Food prices and currency depreciation caused inflation to rise in Peru, expected to rise further with “El Niño” and the currency weakening.

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