World markets may have slowed and the impact felt globally, but Chile remains attractive prospect for investors.
World markets may have slowed and the impact felt globally, but Chile remains an attractive prospect for investors. Here we look at some of the factors that have helped the country remain competitive.
Legal framework: The legal framework is transparent and non-discriminatory, the processes for incorporation are well-known and corruption levels are low. As a result, establishing a new business (mainly SMEs) can sometimes be completed in just one day.
Connectivity: Chile has focused on computerization and connectivity. For example, the local tax framework is highly computerized, making procedures easier and clearer.
Trade competitiveness and export market: Chile maintains regional and multilateral agreements, such as the Pacific Alliance, Mercosur and the Trans Pacific Partnership. It was also the first South American country to join the Organisation for Economic Co-operation and Development (OECD). Chilean GDP growth has averaged 5% per year for over 20 years. Export of goods and services account for more than one third of GDP, and commodities make up approximately three quarters of total exports. The devaluation of the Chilean currency plays an important role in the country's growth, facilitating and encouraging investment in sectors such as agriculture, forestry and fisheries.
Quality of life: Known as one of the Latin American countries with the best quality of life and education in the region, Chile offers modern infrastructure, security and stability to its residents. This presents investors a reliable market for business.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
