Sovereign rating of the Republic of Chile

In its April review, Axesor Rating confirms the credit rating of Chile at A- with stable outlook because of the economic growth outlook for 2021 and 2022, driven by a marked improvement in private consumption and the foreign sector. The European rating agency estimates that GDP will grow by 6.2% and 3.8% in 2021 and 2022, respectively. In turn, these rates will allow the labor market to recover, with the unemployment rate falling by more than two percentage points by 2022. The note positively values the moderate level of public debt, which will be around 33.6% at the end of 2021, and the expectations of reducing the public deficit from 8% to levels of -5% and -2.8% throughout this year and next. However, Axesor Rating warns of the excessive dependence on copper both in the public accounts and in the current account balance, as well as the high levels of debt of the private sector.

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