New Chile lockdown will add to wider uncertainties
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Significance At the same time, a new Central Bank report suggests that, despite a sharp liquidity-driven economic rebound this year, the country faces a lean medium-term outlook. Impacts Lack of compliance with lockdowns has left the government with few tools, other than vaccination, for controlling the pandemic. Preliminary estimates suggest that fiscal spending will rise by a massive 25% in 2021. Monetary policy will face the challenge of balancing inflation risks against the lagging recovery of employment.