Chile's A- credit rating affirmed by Fitch Ratings

Chile's sovereign credit rating was affirmed at A- with a stable outlook by Fitch Ratings on 18 September 2026. The agency highlighted Chile's solid balance sheet, credible macroeconomic framework, and lower public debt relative to peers, counterbalanced by low per capita income, commodity dependence, and weaker external liquidity.

Public debt ended 2025 at 41.7% of GDP. Fitch forecasts the debt-to-GDP ratio will rise to 42.8% in 2026 and stabilize near 43%, remaining well below the 59% median for A-rated peers. The government raised its 2026 debt issuance ceiling by $6.2 billion to $23.6 billion, though better fiscal performance may prevent full utilization.

The agency lowered its 2026 GDP growth forecast for Chile to 0.7% from 1.6%, following a 0.3% year-on-year contraction in the first half of the year. Through July, production at state miner Codelco dropped 7.8% year-on-year, while the unemployment rate reached a post-pandemic high of 9.5%.

Fitch expects the fiscal deficit to narrow to 1.8% of GDP in 2026 from 2.7% in 2025. It projects GDP growth to rebound to 3.0% in 2027, supported by an 8% increase in investment and an economic reform package scheduled for enactment in September, which reduces corporate taxes to 23% by 2029 and cuts permit delays by 40%.