Grau will assume the post after having served as economy minister, Boric said at a ceremony. Grau holds a doctorate in economics from the University of Pennsylvania. He was a member of a political party that merged with Boric’s Frente Amplio, and he advised the president during his 2021 campaign.
Alvaro Garcia, who most recently served as a spokesperson for Carolina Toha’s presidential campaign, will become economy minister.
Grau replaces Mario Marcel — a former central bank governor who is well liked in the investment community — after he unexpectedly stepped down earlier in the day. Both officials worked together to guide Chile’s post-pandemic economic recovery while fostering new investments in areas like lithium and green hydrogen. Grau will take charge of the government’s fiscal policy at a time when officials have worked to rein in public debt.
“Our government will continue moving toward fiscal responsibility, because the rules of fiscal responsibility transcend political cycles,” Boric said after announcing the cabinet change.
Chile’s government is forecasting a budget shortfall of 1.5% of gross domestic product this year, according to its public finance report for the second quarter. Outstanding debt will stand at 42.2% of GDP in December, the report said, up from 15% about a decade ago.
While in the Economy Ministry, Grau faced criticism for some controversial comments on inflation and the fishing industry. Compared to Marcel, he has displayed a relatively more critical stance toward the business community.
Grau helped to secure this year’s approval of a law that reduces processing times for sectoral permits, which are a top source of bureaucracy. He has played an important role in positioning Chile as a green economy, promoting the use of its natural resources.
He has emphasized that Boric’s government will leave the nation’s economy in better shape than at the start of the administration.
Additionally on Thursday, Boric named Maria Ignacia Fernandez as the nation’s new agriculture minister, replacing Esteban Valenzuela.
–With assistance from Antonia Mufarech.
(Updates with new economy minister in third paragraph, Boric comment in fifth paragraph)
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