Friday, April 11, 2014

WHY TO INVEST IN CHILE


We are a small country of 17 million people, producing nearly US$ 300 billion per year in GDP, the 5th economy in South America and ranked 36 in the world by the International Monetary Fund. It  is the first in all Latin America, in  GDP per capita - PPP with US$ 18.945.

During the last 20 years our average annual growth rate has been 5,2 % the highest in South America for such a long period. The unemployment rate is 6,2% and the inflation has been steady under 5% annual during many years.




Chile, since 2010, is the only country in South America that was accepted as a member of the 34 nations belonging to the OECD, obligating itself to build laws, public policies, and standards of organization for the entire society at the highest level possible. 

We have more than 20 Free Trade Agreements and other associations including USA, Canada, China, Japan, the European Union, Turkey, Vietnam, South Korea, Malaysia, Mercosur, Mexico, etc. All these agreements are used by such  countries to establish their base of operation in Chile to deal with all South America.

Also, since 2014 United States is not asking a visa to Chilean citizens visiting for 90 days for business or tourism. We are among other 38 nations, being the only one presently in Latin America having this benefit.

So, we have good and solid relationships with all main super powers: USA, the European Union and OECD, China and Japan.

Engineering, building standards are at a high level to stand the frequent earthquakes. Constructions must be seismic resistant. Due to these strengths, casualties are very minimum when a strong quake happens. On April 2014, an 8,2 earthquake followed by a 7,6 on the next day, both in Iquique on the North of Chile, left only two direct casualties. So, we invite you to invest in real estate and in construction in Chile because they are very well built.

Chile is certainly a mining country having state of the art technologies. Exports of mining products are US$ 50 billion per year. There are many business opportunities on this big market. 


Also we are strong in natural food production, due to the natural barriers that protect our environment and crops from germs and infections. The Andes protects us by the East. The Pacific Ocean by the West. The Atacama desert by the North. And Antartica by the South. So, we are somehow an isolated spot and for this reason some companies use Chile to produce seeds. There is a big potential of investment on this field and a growing demand for food.


The life expectancy is 80 years old, which is a challenge because we are getting older. Schooling is mandatory since Kindergarten up to 12th grade. Pre-school education is also wide spread as women are very active on the labor force.  People under the line of poverty is 14%.  Violence exists but we are second in all the Americas, after Canada, in keeping the lower rate of homicides. There were 3,1 intentional homicides every 100.000 inhabitants in 2012 as a report from UNODC states. 

Corruption and bribery is always a concern, but in general, we had been during decades among the 25 least corrupt countries of the world. At the same level than countries like France and United States, according to Transparency International index.There is corruption, but independency of the powers of the state,  a growing transparency in all spheres, strong governance practices, plus a decent political class, make it harder to cause  a large damage to the society with this permant human virus. But if you come to Chile, please don't try to bribe a police, a carabinero. You will be taken to jail, inmediately. The power of law is strong and private property is respected and protected, independently of the President ruling the country. The law is above all and public officers has to comply with it. So, you can invest safely in Chile to stay on the long term.  A change on the government will not affect the ownership of your assets.

Public finances are in order in spite an earthquake in 2010 costed US$ 30 billion to the economy. Sovereignty Wealth Funds add up to US$ 41 billion on December 2013. Fiscal expenditure is counter cyclical and related to long term expected revenues of the State, providing a buffer against normal short term pressure from the public. The Chilean Fiscal Rule is a milestone of the macroeconomic stability of the country.

Chile public debt from the government is less than 13% of the GDP, an excellent indicator of its strength to face internal an external shocks.

Chile Debt rating by the main risk classifications agencies at the start of 2014 is among the best in emerging economies:

Moody's :            Aa3
Fitch      :             A+
Standar & Poor:  AA-

So, this nation is quite organized in business and on its  social fabric. We still have many challenges, as  to improve the quality of life of people having low income, diminishing inequalities, improving education, diminishing our dependance from fossil fuels, being more sustainable, rising pensions, fighting a growing delinquency, etc. But that is a matter of another article.

We are inviting you to do business with us, on one of the most stable democracies of Latin America. 

Our company equity and business niches are on mining and construction, on a dynamic society having a long term steady growth.

businessinchile@gmail.com

http://chilebusinessopportunities.blogspot.com/

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