Chile's Soaring Public Debt: A Macroeconomic Expert's Warning

Chile's Public Debt: A Macroeconomic Expert Sounds the Alarm Santiago, Chile – June 9, 2025 – Concerns are rising in Chile about the country's soaring public debt. Hermann Gonz alez, macroeconomic coordinator at the prestigious CLAPES UC, recently warned of the alarming trend on the popular financial program, Show Me The Money. Gonz alez highlighted a dramatic increase in public debt, stating, "In 2007, before the global financial crisis, the debt was less than 4% of GDP. Now, it's 42%! It's multiplied by ten." This sharp rise, he explained, is due to persistent fiscal deficits over the past 17 years. He emphasized the need for fiscal adjustments to ensure the country's economic stability and maintain access to low-interest rates and mortgage financing. The interview underscores the urgency for fiscal reforms in Chile. The significant increase in public debt raises concerns about long-term economic sustainability. Gonz alez's expertise lends credibility to this important discussion, making this a critical issue for Chilean citizens and international observers.