Chile among world’s best destinations for foreign investment

The Emerging Markets Logistics Index places Chile amongst the famously booming economies of Brazil, Russia, India and China (the BRIC nations), as well as major population centers like Turkey and Mexico.


Analysis and consulting firms Agility and Transport Intelligence released their 2011 Emerging Markets Logistics Index with Chile ranked as the tenth most promising market for foreign companies investing in infrastructure. According to a press release from Transport Intelligence, Chile climbed three spots in the rankings this year due to “further improvements in its already strong market access.”

The Index looks primarily at three factors: market size and growth attractiveness, market compatibility and connectedness. Largely due to their astounding size and famously booming economies, the BRIC countries—China, India, Brazil and Russia—ranked in first, second, third and fifth respectively. Indonesia, another booming market in a hugely populous Asian nation, took the fourth spot.

The next five places were dominated by what the Index calls “near-sourcing” destinations, meaning markets geographically nearer to the major consumer bases of Western Europe and the United States. Turkey and Mexico, in seventh and eight place respectively, received high scores due to their “strategic proximity to large consumer markets,” the enormous size of their populations, and the relative strength of their economies.

With a far smaller population (Chile is home to about 16 million) and at a greater geographic distance, Chile’s position on the list is helped considerably by its market compatibility. Chile performs well in many of the factors that contribute to this measure, which serves as an indicator for the ease of doing business on the ground. Development and strength of service sector, distribution of wealth, urbanization of population and security are among the indicators evaluated for this measure, all of which are strengths within Chile’s growing economy.

Paraguay, Bolivia and Kenya fell to the bottom of the rankings this year due, said the Transport Intelligence press release, to “a weak economy, poor infrastructure developments and security threats” (the latter primarily being associated with Kenya).

The continued growth of foreign investment in Chile’s economy, and its healthily growing economy, indicate that Chile is not only one of the world’s most attractive destinations for foreign investors, it is also increasingly one of the most popular.