Chile and Ecuador push financial reforms as liquidity trends shift

Chile’s CLAPES UC released a roadmap proposing to expand the financial services sector from its current 3.1% to 5% of GDP within ten years, a move that could generate around 62,000 jobs and add roughly US$8.8 billion to annual economic activity. The plan highlights past setbacks, including massive pension‑fund withdrawals and the removal of tax incentives, and outlines six strategic pillars to restore market depth and attract investment.

In Ecuador, analysts note a reversal from the high‑liquidity environment that prevailed after 2025. While remittance inflows remain strong at a record US$7.73 billion, the trade surplus has halved and private external debt net flows have turned strongly negative, raising concerns about future financing conditions for corporations and the broader economy.