Economic Stimulus Package Announced

President Bachelet announced a $4.0 Billion economic stimulus package on Monday, which is an amount equivalent to 2.8% of  GDP.  The plan seeks to stimulate economic growth of 2 to 3 percent, and cause the direct or indirect creation of more than 100,000 jobs.

The package includes an investment in public infrastructure for road and school improvements, new clinics, and expanded housing programs.  Young, low-wage workers will receive a subsidy equivalent to 20 percent of their pay, and the employer who hires them will receive anonother 10%.  The package augments Chile’s incentives to private investment, and strengthens access to capital for small and medium-sized enterprises.

The stimulus bill, which proposes a 2009 spending increase equivalent to 1% of GDP, will be admitted to congress on Wednesday.