Economic Buzz: IMF sees elevated Copper prices offering support to Chile economy

International Monetary Fund or IMF stated in a latest country update on Chile that risks to growth are tilted to the downside in the near term and balanced over the medium term. Protracted hostilities in the Middle East could keep oil prices higher for longer and weigh heavily on growth through lower disposable income, disruptions to production, and tighter financial conditions. The fund highlighted persistently high copper prices?due to structurally higher demand from the green transition, AI-related infrastructure, and defense spending?represent the key upside risk. IMF noted that under an upside scenario, with sustained high copper prices in the US$ 5.5-6.0 per pound range and implementation of investment-enhancing reforms under the National Reconstruction Plan, IMF staff projects growth to reach around 3 percent during 2027-30, with more than half of the impulse associated with copper prices.

Powered by Commodity Insights