Political turmoil in Chile seems to be shifting as recent polls and analysts indicate a move back towards moderate conservatism. This change has boosted the local stock market to record levels in anticipation of the upcoming presidential election, where center-right candidate Evelyn Matthei leads in current polls.
Analysts view President Gabriel Boric's recent compromise on the country's private pension system as a positive step towards passing business-friendly legislation, marking a shift towards more centrist or center-right policies. The deal has garnered support and increased bank liquidity, positively impacting Chile's financial sector.
The overall political equilibrium in Chile appears to be stabilizing, evident from the pension reform's implications. This favorable political environment led credit rating agency S&P Global to upgrade Chilean sovereign debt outlook, citing improved consensus on critical reforms.
Chile's pivot towards moderate conservatism after a period of unrest and polarization is reflected in the electorate's rejection of both left- and right-leaning constitutional rewrites. The upcoming presidential election is expected to focus on high crime rates as a central issue, potentially influencing voter preferences.
Although concerns exist regarding the far-right's stance on certain social issues, traditional conservative candidates like Matthei are gaining support due to their perceived ability to bridge political divides. Matthei's leadership qualities and track record are appealing to voters seeking stability and centrist governance in turbulent times.
The political landscape in Chile remains dynamic, with potential for shifts in voter preferences towards candidates like Matthei or even more right-leaning figures. The upcoming election will be crucial in determining Chile's political direction amidst ongoing challenges.