The Chilean economy has been steadily recovering from the major shock caused by the pandemic. It ended the year 2020 showing greater dynamism than anticipated, supported by better adapted companies and households and a substantial monetary and fiscal impulse. Thus, although a setback in local activity is foreseen in the weeks ahead due to the tightening of sanitary measures, the outlook for 2021 has strengthened, also supported by sustained progress of the vaccination process, the greater external impulse and the continuation of expansionary policies. There are still important risks, however, related to this unprecedented shock. On the one hand, the epidemiological evolution is still complex, which adds uncertainty as to when and how the sanitary restrictions in place will be relaxed. On the other hand, the recovery continues to be heterogeneous, with significant lags in those sectors more dependent on human interaction, which helps to explain the big gaps that persist in the labor market. At the global level, the correct calibration of monetary and fiscal stimuli in terms of their size, magnitude and permanence is key, in order to support the recovery without generating macro-financial imbalances. Equally important are the scars that the pandemic will leave on households and businesses (including the deterioration of their financial situation) and its impact on the future dynamism of the economy.