Quiroz says Chile is in a technical recession, but brings forward a 4% growth target

The Minister of Finance, Jorge Quiroz, analyzed the economic context Chile is experiencing alongside Bloomberg, the American financial and news analysis company. In the conversation, the Secretary of State spoke about the country being in recession and the possibility of private capital entering Codelco, among other topics. "He recognized for the first time that the economy is in technical recession, but assured that activity will recover quickly thanks to measures to boost investment," begins the Bloomberg note. The interview, titled in Spanish "Quiroz says the recession in Chile will be short and the rebound will come fast," states that the Secretary of State bets that tax cuts for companies and "more flexible regulation" will help boost Chile's economy. "It can technically be called a recession, but basically the economy has faced some supply shocks this year, mainly due to the sharp drop in copper production," Quiroz told Bloomberg. In that vein, the Secretary of State appealed that "if you observe the non-copper sector of the economy, you can see strong growth." Bloomberg contextualized Quiroz's figure as the most powerful minister in the government, valued by his economist peers in Chile, and one of the least popular Secretaries of State. Looking ahead, Minister Quiroz projects the economy to grow close to 4% in 2028. Thus, the Secretary of State estimates they will be able to meet the self-imposed growth target by the end of his term sooner than expected. According to the Central Bank's latest Monetary Policy Report (Ipom), GDP growth ranges are projected between 2 and 3% in 2027 and between 2.25 and 3.25% in 2028. Another topic he addressed is the future of the Monetary Policy Rate (TPM), where long-term market projections are that it will remain at 4.5%. Current twelve-month inflation is at 4.5%, far from the Central Bank's 3% target. "I would see no problem if the Central Bank adopted a firmer stance against inflation," the Secretary of State said. Codelco and US Investment The Minister of Finance, Jorge Quiroz, also referred to the future of Codelco, where the minister told Bloomberg that "it will need private capital in the longer term, beyond the project-by-project exploration partnerships it currently uses." "In the longer term, perhaps we will have to think about private capital investment in Codelco itself," Quiroz said. The note explains that Quiroz commented that "any measure of that type would maintain state control and is not part of the government's immediate plans." "First of all, we have to put the house in order," he said, including making changes to the company's management. The minister also raised the need to "sell some non-strategic assets to focus on its main business." Quiroz also told Bloomberg that he would like to see more US investment in Chile, including copper refining. "According to the minister, US officials have repeatedly expressed interest in Chile producing more copper cathodes and concentrate," the note says. "I would welcome US investment, for example, in refineries, to export copper cathodes to the US. That would be excellent for everyone," he commented.