Chile A place to Invest
Chile is the best evaluated economy in Latin America and, indeed, one of the best evaluated among emerging economies worldwide. Its sustained economic growth and social progress have been highlighted by different international organizations and, in 2010, it became the first South American country to join the Organization for Economic Co-operation and Development (OECD).
Its hallmark stability, transparency and competitiveness and excellent business prospects position the country not only as the best destination for foreign investment in Latin America and but also as one of the world's leading destinations. According to the World Investment Report 2013 released by the United Nation Conference on Trade and Development th (UNCTAD), Chile was the world’s 11 largest recipient of foreign direct investment in 2012. With a record in-ow of US$30,323 million, Chile was among the top 20 recipients for the second consecutive year, rising from 17 place in 2011 to 11 place in 2012.
In the eight years from 2005 to 2012, Chile's GDP grew at an average annual rate of 4.6%, according to the Central Bank of Chile. In 2012, in the midst of the European debt crisis, Chile's economy demonstrated its resilience to adverse international conditions and GDP expanded by 5.6% to US$268,413 million. As a result, per capita income reached US$15,410 and, in purchasing power parity terms (PPP), US$18,419, according to figures published by the International Monetary Fund (IMF) in April 2013.“Chile FDI position to be reviewed according to the World Investment Report 2015 if convenient”.
Chile Land of Opportunities
Chile is not only Latin America's best evaluated economy but also one of the best evaluated emerging economies internationally. Its hallmark stability, transparency and competitiveness and excellent business prospects position the country as the best destination for foreign investment in Latin America and one of the world’s leading destinations.
In its World Investment Report 2015, UNCTAD ranked Chile as the world's 11th largest recipient of foreign direct investment in 2014. With an inflow of US$23,000 million in 2014, Chile took second place in Latin America after Brazil and ahead of Mexico In its World Investment Report 2015, UNCTAD ranked Chile as the world's 11th largest recipient of foreign direct investment in 2014. With an inflow of US$23,000 million in 2014, Chile took second place in Latin America after Brazil and ahead of Mexico
Chile was the sixth largest recipient of FDI among developing economies in 2014, according to UNCTAD. US$ 23,000 million inbound FDI in 2014.
FDI by Country of Origin
According to the Central Bank of Chile, FDI for US$100,8 billion entered Chile between 2009 and 2013. The principal countries of origin were the United States with US$16,834 million (equivalent to 16.7% of the total), the Netherlands with US$14,504 million (14.8%), Spain with US$10,483 million (10.4%), Canada with US$5.140 million (5.1%) and the United Kingdom with US$4.334 million (4.3%).
Chile Country Risk Summary
The country's political stability and pro-business economic philosophy have consistently won it high ratings among international investors. While many in the business community have accused Bachelet of putting Chile's reputation as a stable environment for foreign investment at risk by pursuing aggressive reforms simultaneously (for example, to the education and political system), the country does remain a stable investment destination. Although there will be no move from associate to full membership of the Southern Common Market (Mercosur), free-trade agreements with the EU, the US and China have confirmed Chile's status as the region's most stable and outward-looking economy.
The operating environment remains broadly positive despite concerns over future energy and water provision. There are few restrictions on property ownership and the judicial system is widely considered to be fair and independent of the government. Bureaucracy and red tape are at a minimum compared with many other Latin American countries, while the government is seeking to further speed up processes by shifting them to electronic platforms. The limited number of bureaucratic procedures involved in doing business has reduced opportunities for corruption, though the government's credibility has been hit by a several facts of minor scandals in public agencies. High-level corruption involving legitimate business operations remains rare. Labor and environmental activism is a growing (though still generally limited) risk to operations; activism is strongest in the energy and mining sectors. Foreign companies are not particularly targeted.
Crime rates have increased but remain lower than elsewhere in the region; crime against foreign-owned companies is rare. Violent crime is increasingly common, especially in the capital Santiago, possibly because of increased domestic consumption and trafficking of narcotics. Street crime occasionally involves violence, but generally poses few problems to foreign personnel who observe basic security precautions. Foreign companies, especially those involved in large infrastructure projects, occasionally encounter opposition from environmental activists and groups campaigning for indigenous rights. Amerindians have stepped up their demands for the restitution of ancestral lands and oppose all ventures that encroach on these areas. Protests mainly focus on energy projects and foreign timber companies in the south. However, most are small-scale and pose few risks to operations.
No Islamist extremist groups are known to be active in Chile, and there have been no Islamist extremist attacks in the country. Domestic terrorist activity has virtually ceased since 1990, though fringe leftist extremist groups retain an ideological hostility towards the US.