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Nº 1 advantage

A place to invest

Chile is the best evaluated economy in Latin America and, indeed, one of the best evaluated among emerging economies worldwide.

Wednesday, July 29, 2009  
Economía Competitiva

Chile is the best evaluated economy in Latin America and, indeed, one of the best evaluated among emerging economies worldwide. Thanks to its political stability, social progress, macroeconomic responsibility and fiscal austerity, it has consolidated its standing as an attractive destination for the foreign investment.

Fiscal discipline is one of the key pillars of Chile’s solid international image. Its fiscal accounts have shown a sustained surplus that reached a record level in 2007. This trend was, however, interrupted in 2009 when it ran a deficit of -4.4% of GDP due to a drop in revenues caused by the international economic crisis and the implementation of a US$4 billion stimulus plan that, according to the IMF, was one of the five largest in the world relative to GDP. A significant reduction in the deficit was, however, achieved in 2010, putting fiscal accounts on track to recover their historical trend.

In the ten years from 2000 to 2010, Chile’s GDP grew at an average annual rate of 3.8%, according to the Central Bank of Chile and the International Monetary Fund (IMF). In 2010, central-southern Chile suffered the sixth largest earthquake ever recorded, but GDP nonetheless expanded by 5.2% to US$203,925 million while per capita income, at US$11,929, reached its highest level in eight years.

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