OECD increases 2018 GDP prediction for Chile

SANTIAGO – The Organization for Economic Co-operation and Development (OECD) increased its GDP economic growth prediction for Chile for 2018 from 2.8 to 3.6 percent, it announced on Wednesday.

According to a new report, this optimism is due to improvement in Chile’s external perspectives and favorable financial conditions.

This GDP growth prediction is slightly higher than that of the International Monetary Fund (IMF) at 3.4 percent and the Chilean government at 3.5 percent.

The OECD prediction of 3.6 percent is also the same as the result of a poll of local financial operators, gathered by the Central Bank in early May.

According to the OECD report, however, Chile needs to continue with reforms to drive investment and productivity in order to maintain high growth over the medium term.

The OECD praised recent proposals to simplify regulation and simplify business processes. It also praised the plan of President Sebastian Pinera to reform Chile’s tax system.

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The OECD said that building on recent educational reforms, such as ensuring that relevant skills are being learned at all levels of education, would improve productivity and inclusiveness.

In terms of investment, the international body said that, after four years of decrease, it will return to growth for 4.5 percent in 2018.

The report said that the OECD member countries would grow at an average rate of 4 percent in 2018.