“Although international markets have slowed and the impacts of this recession are still being felt, Chile is still a very good option for investors.
Rating agencies have increased or maintained high growth rates for the country, due to its low public debt, a healthy financial system and reliable institutions. According to the Business Environment Ranking of the Economist Intelligence Units 2014-2016, Chile took 13th place out of 82 economies.
In the latest report by the UNCTAD (United Nations Conference on Trade and Development), Chile was positioned at number 17 of the nations with the largest foreign direct investment in 2015, with an inflow of USD 20.2 billion. With this, Chile takes third place in Latin America after Brazil and Mexico. Chile is also known for its transparency; according to the Transparency International's 2015 Corruption Perceptions Index, Chile is ranked at number 23 out of 168 countries.
Chilean business links are well established with the international community and the country remains an attractive market for foreign investment, due to its stable economy, good infrastructure and large resources sector. As one of the most advanced economies within the region, the country has few barriers for establishing and operating a business, however the operating costs tend to be higher than other Latin American countries due to the higher input costs such as salaries, fuel, transport and other consumables.
With that in mind, the resources sector, which the country remains very dependent upon is facing a number of challenges associated with low commodity prices, elevated input costs and a scarcity of water and energy. Nevertheless, these challenges also present an opportunity for foreign companies and/or investors that can bring to market higher energy efficient systems, water management systems, energy efficient desalination technology, low water-use mineral processing technologies and training and practices linked to improved productivity and systems that reduce operating costs.
Combining the opportunities above with the abundance of local human capital, Chile remains a land of opportunity. Supporting this is the high level of education provided from local institution’s, whereby Chile has two of the top ten universities in Latin America, according to the Academic Ranking of World Universities (ARWU). Chile is also positioned in 25th place among 100 economies in the Global Talent Index 2015 of The Economist Intelligence Unit (EIU).
Finally, Chile has a variety of landscapes and a special Mediterranean climate for tourism. Security, the political environment and its modernity, make Chile one of the countries with the best quality of life in Latin America. Chile's capital, Santiago, is catalogued as one of the best cities to live in Latin America. The country was evaluated in place 29 of 162 countries within the Global Peace Index study of 2015”. – Ivette Avaria, CIB Country Manager.