Updated 04:04 PM EST, Mon, Nov 23, 2020

Chile's Finance Minister Admits Country will Suffer a Prolonged Economic Slowdown but Remains Optimistic

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One of Chile's top officials has recognized the economic slowdown in the country, but expressed optimism that the country can overcome another battle in terms of its economy.

Bloomberg said the country's Finance Minister Rodrigo Valdes has noted that the country will be able to recover from the economic woes it is currently facing, though it may take a bit longer.

"There are no major reasons to think that Chile can't return to the growth it saw a few years ago, before the copper boom. In the long-term, things haven't changed that much," he added.

With Valdes' recent statements, the Chilean people and businesses have regained optimism that Chile will make it past this economic crisis, especially in the copper industry.

In a similar Jakarta Globe report, the finance minister mentioned that the world's largest copper exporting nation is indeed experiencing a slowdown because of the fall in metal prices.

He added that the government is trying to cope by recalculating growth as well as budget costs.

"(Emerging markets) are seeing headwinds that we have not seen for at least 10 years," Valdes explained, noting that the trend is a different one from what the country experienced back in 2009.

Seven years ago, he said that there was a V-shaped shock, where the country was able to perform a lot of things even in a short term.

The need to adjust to reality was highlighted by the finance minister, noting that people should recognize the situation and act properly on it.

As for the country's current coping mechanism, the finance minister told Jakarta Glove that they are adjusting the 2.75 percent expansion for year, as it is unrealistic.

The correct figure is estimated near 2 percent, but Valdes said the government will be properly studying this for the next weeks.

"We assumed that copper prices would be around $2.50 per pound this year and that's looking very unlikely. At the end of the day, this means there will be fewer fiscal resources," Valdes mentioned in a similar Reuters report.

Chilean President Michelle Bachelet also recently mentioned that the slump in copper prices can be managed and met with prudence by the country under her leadership, as per La Prensa.

She also expressed positivity that with the government's effort will protect the citizens and still attain economic growth for Chile.

Along with these pronouncements, Bachelet encouraged investors to continue capitalizing on the opportunities in the country, since it still offers "stability, reliability and capacity."

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