LatAm Chile Economy
One of the most globalized countries in the region (in terms of international trade agreements), of the 6 nations covered in, the BrandZ™ Top 50 Most Valuable Latin American Brand Ranking 2013, Chile currently ranks third for forecast growth, at around 4.4% for 2013. It also had the second largest growth in 2012 . With a CAGR of 4.0% over the past four years, the country’s rates of growth from 2010 to 2012 have ranged between 5.9% and 5.6%. Despite a recent deceleration due to a fall in copper prices and a consequent increase in the balance deficit (impacted by the economic slowdown in China), and a drop in investment and domestic demand (according to IMF), there is still a sense of optimism in the country. The financial and economic sectors show a period of stability due to low inflation rates, and subsequent falls in unemployment rates since 2009.
Motivated by the recent agreement with the United States visa waiver program (whose parameters are considered key requirements for developing countries) the country is regarded as the most open economy in the region. It has signed numerous trade agreements and is doing business with more than 50 countries, including the United States, European Union, China and Japan. These treaties are the result of an economic liberalization that began three decades ago with the aim of opening Chile’s economy to other markets in the world. It has great competitiveness and a strong retail sector composed of banking institutions and large companies with renowned brands such as Falabella, Lan and Sodimac. The country has a growing labor force and one of the lowest poverty rates in the region; however, protests have arisen throughout the country, demanding better quality in services provided by the government, and greater access to education.