Ten Years of Deceleration in Chile's Trend GDP

• DOI: 10.2139/ssrn.4624159
• Publication Date: 2023-12-06T18:31:08Z
• Authors: Patricio Órdenes

This article examines the deceleration of trend growth in Chile last decade. It is observed that, while between 1990 and 1999, average GDP was around 6.7%, years 2000 2009, this figure dropped to 4.4%. Subsequently, 2010 2019, it fell once again, reaching an 2.9%. Furthermore, projections for 2023-2032 indicate even lower rate 2.1%, marking a cumulative decline over 4.5% two decades. The major drivers slowdown are reduced capital contribution negative Total Factor Productivity (TFP). To reignite growth, paper advocates "microeconomic revolution," comprising incentives R&D investment, increased market competition, streamlined regulation, more favorable tax framework accumulation. study provides roadmap tackle Chile's economic challenges stimulate new sustainable growth.