Address by the President of Chile, Ms. Michelle Bachelet, to the Council of the Organisation for Economic Co-operation and Developpement (OECD), Paris, May, 28th

After several years of robust expansion, activity is projected to moderate and inflation to recede. The slowing world economy, tighter financial conditions and lower investments in mining and energy will all slow growth. Inflation will decline gradually as second-round wage increases from high commodity prices wear off and expectations are reanchored to the central bank’s target. Past current account surpluses have disappeared as copper prices have retreated from high levels.

Chile has elected its first female president, in Michelle Bachelet. As head of the left-leaning coalition which has led Chile since the country’s return to democracy in 1990, the new leader has promised continuity, though with a promise of more jobs and social justice. Tackling these issues could indeed make a difference, even if the economy has fared relatively well, as our OECD experts explain.

Reforms that instil greater coherence in social and economic policies would help Chile build on its successes and get the economy back on to a stronger growth path.