Chile's Minister of Finance, Jorge Quiroz, has indicated that the national economy would have left behind its "decadence" phase in June and would have entered an "inflection point" that opens a new stage of sustained growth for the country.
As he explained, the evolution of tax collection allows anticipating the behavior of activity. "Collections tell you what happens with the sectors. What happened in previous months was announced by the VAT. That same VAT, with the figures we have for June, tells us that it will have a positive Imacec [Monthly Economic Activity Index] figure," Quiroz explained in an interview granted this Sunday to the newspaper 'La Tercera' and reported by Europa Press.
In this context, the head of Finance remarked that "So, June marks the inflection point and I am very optimistic about what will happen in the second half with the approval of the Reconstruction Law."
Boost from the Reconstruction Law and prospects
The minister referred to the 'Law for Reconstruction and Economic and Social Development', promoted by the Government of José Antonio Kast, which includes more than 40 initiatives in areas such as taxation, the labor market, deregulation, legal certainty, and public spending discipline.
Quiroz stressed that the phase of economic weakness observed until May was "transitory" and that "there are no signs of recession." He also reiterated that the Executive is focused on reversing the country's "situation of decadence" and on raising the potential GDP growth "much beyond 2%."
The head of Finance also highlighted that the international price of copper remains "resilient" and that "changes in expectations" are already perceived in the investment sphere, factors that, in his opinion, support the scenario of economic recovery and expansion that he foresees for the coming months.