Nicolas Jacquier, Emerging Market Fixed Income Portfolio Manager at Ninety One, comments on the Chilean election results
Jacquier said: “Right-wing Kast won the presidential election by a wide margin (58%) against left-wing Jara (42%), very much in line with expectations and polls. Even if the right is just short of an outright majority in Congress, this gives him a strong mandate to govern.
“In his first speech, Kast sounded very conciliatory and promised a government of agreement and moderated expectations. He will focus on security and spurring economic growth with a programme of tax cuts and deregulation. More immediately, he is looking to accelerate permitting of investment projects.
“While largely expected, this should be well received by markets: we are now past this key event, the scale of Kast’s win was large and we expect business sentiment to bounce. There is already a very large pipeline of investment projects underway, so Chile is well positioned to experience a growth recovery next year. “
