Chilean economy

Chile is Latin America’s most globalized country

The news comes from a report that global accountancy giant Ernst & Young presented to the 2012 World Summit.

Thursday, January 26, 2012 Category: Business
“Sanhattan,” Santiago’s financial district. (Photo: sarihuella/Flickr) “Sanhattan,” Santiago’s financial district. (Photo: sarihuella/Flickr)

“The world is bumpy” was the title of the 2012 Index of Globalization that Ernst & Young presented to the World Summit at Davos on Monday - but according to the report, the economic road ahead for Chile looks smooth.


Chile was the highest-placed Latin American nation in the ranking prepared by the “big four” accountancy firm, and rose to become the 25th most globalized country on earth.


The index considered the world’s top 60 countries in terms of GDP and assessed their performance in the areas of foreign trade, capital movement, exchange of technology and ideas, labor movement, and cultural integration.


The findings were then compared with a survey of a thousand business executives to identify what they consider to be important global trends.


And despite concerns about global economic outlooks, Chile received a vote of confidence from the report, becoming one of the few countries to improve its position in the face of global uncertainties.


“Unlike other countries, the policies of Chilean governments have promoted openness in times of turbulence, taking the sufficient precautions so the economic turmoil does not hit the country hard,” Cristián Lefevre, senior partner at Ernst & Young Chile, told El Mercurio.


Chile’s ability to attract foreign capital was considered its greatest asset, an area in which it came in at fourth in the world, while foreign trade was also considered a strength.


“Chile is one of the countries that has the most trade agreements worldwide, including among relevant economies like the U.S., the European Union and China," said Lefevre. “We have gone further than other nations who opened themselves later to the world economy.”


Technology was the country’s weakest point, but with a string of new research collaborations between the country’s leading universities and international pace-setters announced in 2011, it is an area that Chile will be looking to improve in coming years.


And it’s not the only area in which the future looks rosy for Chile.


With developed economies projected to stagnate - like the United States (with a predicted 2.4 percent growth this year) and the European Union (0 percent) - the Ernst & Young report forecasted that the world’s best performing developing countries could provide up to 70 percent of global growth in the year ahead.


And with Chile increasingly being seen as a gateway to trade and investment in South America, the stage appears set for Chile to continue its rise up global rankings.


To see the full report click here.