Chile is generally well known for its extensive wine regions and a place for tourists to come, whether that be to ski, soak up the sun or take in the sights. However it has developed into a district for investment and business growth. Its capital Santiago is sometimes referred to as ‘Sanhattan’ due to its appearance and becoming the primary financial center in the country. The country itself has sometimes been nicknamed ‘Chilecon Valley’, due to its rankings in strong property rights, judicial system effectiveness and government integrity.
In this post we are going to explore 5 reasons to trade in Chile, leading to successful expansion for your business.
It is one of the fastest growing economies in Latin America. GDP growth is expected to reach 2.5% by the end of 2022, stabilizing at 1.9% in 2023, leading to an expected GDP of 374.23 billion US dollars. This growth in GDP is largely due to inventory replenishment, increased household consumption and economic measures which have supported income.
Chile stands out in the region for its ease of doing business, where it was ranked 59th out of 190 economies in the World Bank Annual Ratings. Chile also boasts a large entrepreneurial spirit, with 45% of people surveyed saying they had the intention of starting a business. Thus representing how the country has developed and shows promise for many business entrepreneurs in the region.
Chile is responsible for over 1/3 of the global copper output, making it the number one producer around the world. It is also the second largest producer of lithium, which is used to power next generation batteries. In addition, its diverse landscape means that the agricultural sector is very important to the country. A strategy implemented in the 1990s which targets the European, North American and Asian markets has meant that fruit and vegetable exports have reached historic records in recent years. Its location in the Southern Hemisphere means that it can produce fruits which may be out of season in some northern hemisphere countries. Furthermore, it is one the world’s largest wine producers. However, having said this, the services sector also continues to grow due to fast developments in technology, better access to education and increased knowledge among workers. The revenues earned from these activities lead to significant financial advantages and access to large markets around the world.
Chile has signed free trade agreements with very important economies, such as the EU, the US, China and South Korea. The trade continuity agreement with the UK also proves beneficial as it ensures that there are continued trade relations. It also participates in international treaties, like the Pacific Alliance. These agreements giving access to many parts of the world suggest that Chile is an internationally open economy, proving beneficial for many business investments.
'Start Up Chile' was founded in 2010 by the Chilean government, which acts as a seed accelerator to provide equity free investment for qualified startups. With this in mind, the vision is to transform business culture and put Chile on the map as a business district.
Despite the impacts of the pandemic, Chile is expected to bounce back and given the reasons mentioned above it is clear to see that there are many motives to bring your business to Chile. Whether that be due to its foreign trading opportunities or government programs.
If you’re interested in expanding your business to Chile, or want to find out more, get in touch with us and our expert team will be more than happy to help you.