Chile's 2026 Economic Outlook: Balancing Growth and Inflation

Chile's finance minister Nicolas Grau announced a 2026 budget forecast predicting a GDP growth of 2.5% and inflation reaching its 3% target in early 2026. This aligns with market expectations. The budget emphasizes health sector spending with a proposed 1.7% annual increase.

Chile's finance minister Nicolas Grau revealed the 2026 budget forecast, projecting a slightly brighter economic horizon for the nation. The budget predicts a 2.5% increase in GDP, up from July's estimate of 2.3%. Grau notes that this optimistic outlook is being embraced by the market.

Inflation is anticipated to meet its 3% target earlier than expected, aligning with the first half of next year. This revision contrasts with the Central Bank's earlier forecast, which projected this convergence by the third quarter of 2026.

President Gabriel Boric underscored the government's commitment to prioritize health sector spending, proposing a 1.7% annual budget increase. This comprehensive budget approach aims to fortify Chile's economic and healthcare landscape.

(With inputs from agencies.)