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The Social Explosion in Chile started as a protest against a tariff increase of the transport system in the city of Santiago on October 18 of 2019. The protests quickly disrupted economic activities, with the growth forecasts for the next 2 years falling by 3% of the GDP. The Covid pandemic caused a fall of around 6% of GDP in 2020. This decline was reversed in 2021 with an explosive growth above 10% of GDP, as a result of several expansionary policies. Both shocks were unexpected. Carlos Madeira discusses the impact of these twin macro shocks on the households and their debt risk.
Image courtesy of interviewee. December 16, 2021
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