Chile's GDP To Expand Moderately In 2017: IMF

(RTTNews) - Chile's economy is set to expand moderately next year, the International Monetary Fund said Friday.

The Executive Board of the IMF said gross domestic product is forecast to grow 2 percent next year after expanding 1.7 percent this year.

Faster growth in main regional partners and more stable copper prices are expected to lift exports and investment. However, the recovery is projected to be gradual, held back by slow wage and job growth.

On price front, IMF said inflation will continue to decelerate to 2.7 percent next year.

The lender recommended a policy mix that supports short-term growth and emphasizes building on an already-strong structural reform agenda capable of boosting the economy's medium-term growth potential.

The IMF advised Chile to maintain supportive monetary policy and to keep fiscal consolidation appropriate to retain credibility.

In order to increase potential growth, the IMF urged the authorities to create a new Infrastructure Fund to attract private capital.