world-economy

Chile Economy Contracts as Kast Pushes Pro-Market Reforms

Chile's economy shrank in the first quarter as President Jose Antonio Kast advanced a broad economic reform package to attract investor confidence. The flagship bill cleared its initial congressional vote Thursday, though the narrow margin underscores legislative obstacles ahead for the administration.

Kast's market-friendly proposals have generated optimism among investors betting on structural economic changes. However, political negotiations have complicated passage of the broader agenda. Franco Parisi, who finished third in last year's presidential election, has leveraged his congressional support to extract concessions on his own initiatives. Parisi's populist initiatives have forced the government into negotiations over its economic agenda.