Chilean investors welcomed the election of Jose Antonio Kast as president, with markets rallying on expectations of more market-friendly and pro-investment policies.
Kast secured a decisive runoff victory, beating leftist candidate Jeannette Jara by roughly 16 percentage points. He will assume office in March, succeeding President Gabriel Boric.
🔹 Market Reaction
- MSCI Chile equity index rose 0.55%, extending a recent rally
- The Chilean peso has strengthened about 2.7% vs. USD since early November
🔹 Policy Expectations
Kast campaigned on a platform focused on:
- Stronger law and order and tighter border controls
- Corporate tax cuts and lighter regulation
- More flexible labor laws
- Spending reductions
- Support for investment in copper, Chile’s flagship industry, without major governance changes
Investors are betting that these policies will help restore growth momentum after several challenging years.
🔹 A More Moderate Tone
While long seen as a hardline figure, Kast struck a conciliatory tone in his victory speech, stressing stability and gradual change.
Analysts noted that his style appears institutional rather than populist, easing fears of radical disruption.
🔹 Key Risks Ahead
Kast will govern with a divided Congress, limiting his room for maneuver. Economists also warn that high debt levels and elevated expectations make the first 100 days critical for credibility.
“High expectations can become a problem if they are not fulfilled,” said economist Jorge Berrios.
For now, markets are signaling cautious optimism that Chile may be entering a more predictable, investment-friendly phase.