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Country Insights: Chile highlights

EY - Cristián Lefevre

Cristián Lefevre
Chile Managing Partner
EY

For the last 23 years, Chile has pursued a steady course of growth along free-market lines. Per capita income has nearly doubled since 1990, and is approaching the highest in Latin America. The poverty rate is now about the same as that of the US.

This high degree of political and macroeconomic stability has given Chilean companies a firm foundation on which to build their futures. Today, their main problem is scale: Chile is a relatively small country. With a population of just under 17 million, the decision to go abroad tends to happen much earlier in a company’s development than in larger markets.

Chilean business is meeting the challenge of expanding into larger markets and not just as one of the world’s leading copper producers but in other sectors as well. Whether you’re buying clothes in Bogota, having a kitchen redone in Rio or flying to Buenos Aires, chances are that a Chilean company is there to serve you.

In this report, we look at how Chilean companies are evolving from serving their home market to serving a few other countries or an entire region. We have asked them where they want to head next, why and how, and we interviewed executives at some of Chile’s most dynamic businesses about the challenges they see ahead.

Fast facts: Chile

  • For ease of doing business, Chile is ranked first in Latin America. (Doing Business in Chile 2012, the World Bank)
  • Chile is perceived to be one of the least corrupt countries in Latin America and is the third least corrupt in the Americas, after Canada and the US. It is considered one of the 20 cleanest economies in the world ̶̶  ahead of France, Austria and Ireland. (2012 Corruption Perceptions Index, Transparency International)
  • In logistics performance, Chile is ranked as the leading country in Latin America. (Logistics Performance Index, LPI results 2011, World Bank)
  • Chile is highly globalized, ranking 28th on the 2012 EY Globalization Index, which ranks the world’s top 60 countries by GDP according to the extent of their openness to trade, capital flows, exchange of technology and ideas, labor movements and cultural integration. By contrast, the US ranks 25th, Mexico ranks 37th and Brazil 45th. (Looking beyond the obvious: globalization and new opportunities for growth, EY, 2013)
  • Chile is considered the most innovative economy in Latin America. (Global Innovation Index 2012, INSEAD [European Institute of Business Administration])

For more information

EY - Chile Download the Chile highlights report here.