MNI BRIEF: Trump Likely To Let Powell Serve Full Term-Moore

MNI BRIEF: Canada Household Debt Tops $3 Trillion In 3Q

MNI BRIEF: Trump Likely To Allow Powell To Serve Term - Moore

MNI INTERVIEW2: Poland To Push For EU Defence Fund

MNI BRIEF: China To Keep Stabilising Housing Market - CEWC

MNI BRIEF: China Focus On Boosting Consumption In 2025

EZ/UK Bond Supply Calendar: Belgium ORI Facility on Friday

US EIA:NAT GAS STORAGE -190 BCF TO 3,747 BCF DEC 06 WK

MNI: US JOBLESS CLAIMS +17K TO 242K IN DEC 07 WK

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

HSBC Say Reform Focus Moves Now To Fiscal, Pensions

CHILE
  • According to HSBC, following the 19 December referendum on a new constitution, Chile will move on from the higher levels of uncertainty that have been in place since social unrest erupted across the country in mid-2019. They would expect this to allow for a more productive discussion of other pending reforms.
  • The government expects to send a new tax reform proposal to Congress in March 2024, a year after the defeat of its previous attempt. To get support from the opposition, the government has offered more pro-growth proposals (lower corporate taxes and faster approvals of investment projects, among them), as well as an increase in tax compliance.
  • Authorities identify a need to raise spending by 2.7% of GDP, most of it in a more generous universal pension scheme and higher spending on healthcare, and now see a 0.6ppt of GDP gap to be filled with higher taxes. HSBC forecast a 2.3% of GDP fiscal deficit in 2023, improving to 2.0% in 2024 and 1.5% in 2025. HSBC note their forecasts are subject to the outcome of reform discussions.
  • On pensions, there is agreement on the need to raise contributions by 6ppt, but the debate on how this will be used continues. The government’s proposal is for 2ppt to go to the individual contribution, 3ppt to a solidarity pillar of the system, and 1ppt to a specific fund to foster employment of women. The opposition maintains that all additional contributions should go to individual accounts (El Mercurio, 18 Dec).
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.