Chile Businessforecast Industry Forecast

The Chile Business Forecast Report provides essential macroeconomic, political and financial analysis for companies doing business in Chile. The Chile Business Forecast Report helps businesses with Chilean market assessment, strategic planning and decision making to promote growth and profitability in Chile and is an essential tool for CEOs, Chairmen, Finance Directors/CFOs, Managing Directors, Marketing/Sales Directors with commercial interests in this emerging market.

An influential new analysis of Chile's political, economic and financial prospects through end-2012, just published by award-winning forecasters, Business Monitor International.

 

 

 

Key Uses of the Chile Business Forecast Report | Chile's Political Outlook | Chile's Economic Outlook | Chile's Business Environment | Key Chile Industry Sectors | Chile BMI's Executive Summary | Our North and South America Subscribers | Full Range of BMI's Business Forecast Reports

Key Uses for the Chile Business Forecast Report

  • Forecast the pace and stability of Chile's economic and industry growth through end-2012
  • Identify and evaluate adverse political and economic trends in Chile, to facilitate risk mitigation strategies
  • Assess critical shortcomings of Chile's business environment that pose hidden barriers and costs to corporate profitability
  • Contextualise Chile's country risks against North and South America regional peers using BMI's country comparative risk ratings system
  • Target business opportunities in Chile's high-growth industry sectors
  • Evaluate external threats to doing business in Chile, including currency volatility, the commodity price boom and protectionist policies

The Chile Business Forecast Report by Business Monitor International includes four major sections: Chile's Political Outlook, Chile's Economic Outlook, Chile's Business Environment and Chile's Key Industry Sectors.

Chile's Political Outlook:

What are the political risks to doing business in Chile over the next 5 years?

BMI's Chile Country Risk Ratings evaluate the short and medium-term threats posed by government instability, adverse economic policy-making, deterioration in the business environment and external shocks.

Chile Political Outlook Contents

  • SWOT Analysis for the Chilean Market
    Political Strengths, Weaknesses, Opportunities and Threats facing Chile.
  • Political Stability and Risk Assessment for Chile
    BMI's Risk Ratings assess explicit short and long-term risks to political stability; latest ratings, rankings and trends for Chile's risk are compared with North and South America regional and global averages.
  • Current Administration and Policy-making in Chile
    BMI profiles key policy-makers and power-brokers in the Chilean government, assessing threats to the continuity of Chilean economic policy, and likely changes to the business operating environment through end-2012.
  • Chilean Foreign Policy
    BMI examines key trends and shifts in Chile's foreign relations and alignments with North and South America neighbours, the United States and Europe, focusing on external influences.

Key Benefits

  1. Benchmark Chile's risk profile against its neighbours, the global and regional average, allowing easy comparison of risks between key business markets.
  2. Identify, evaluate and anticipate political and security risks to the business environment in Chile, and to your company's current operations and future plans.
  3. Gain valuable insights into the Chilean government and policy-making, through BMI's specialist team of analysts and economists, and their exclusive network of private and public sector sources.

Chile's Economic Outlook:

How will Chilean economic policy-making and performance impact corporate profitability over 2008-12?

BMI provides fully independent 5-year forecasts for Chile through end-2012 for more than 35 macroeconomic variables. We evaluate Chilean growth, and also forecast the impact of economic management, including central bank policy, on profitability.

Chile Economic Outlook Contents

The Chile Business Forecast Report features explicit BMI economic forecasts for Chile, with supporting commentary and analysis, for end-2008, 2009, 2010, 2011 and 2012 set against Chilean government views. Underpinning our Chile forecasts are key assumptions for the global economy through end-2012, covering growth, inflation, employment, trade and investment, interest and exchange rates in the US, Japan and the Euro-zone.

Coverage of Key Economic Issues in Chile

  • Economic Activity in Chile
    Real GDP growth; industrial growth; employment growth; inflation and consumer prices; consumption (indicative wages, retail sales, consumer confidence)
  • Fiscal Policy in Chile
    Current macroeconomic strategy and implementation policies; government finance (revenue, expenditure, budget balance); tax reforms
  • Monetary Policy in Chile
    Interest rate trends (bank lending and deposit rates); inflation (retail price inflation, consumer price inflation); exchange rate policy in Chile; Chilean currency controls; influence of foreign direct investment inflows; exchange rates and foreign exchange reserves
  • Balance of Payments in Chile
    Merchandise trade (exports, imports, trade balance); current account balance
  • Foreign Direct Investment in Chile
    Foreign direct investment approvals and inflows; the foreign investment climate
  • Chilean External Debt
    Debt profile (short- and long-term debt; public and private sector exposure)

Key Benefits

  1. Rely upon BMI's 100% independent Forecast Scenarios for Chile and underlying assumptions - we take no advertising and are privately-owned.
  2. Exploit the benefits of BMI's comprehensive and reliable macroeconomic Chile database, sourced and fully maintained by BMI from an extensive network of private sector, government and multilateral contacts.
  3. Gain key insights into the current and future direction of Chilean government economic policy

Chile's Business Environment:

How internationally competitive is Chile's regulatory environment, and what changes can be expected?

BMI assesses levels of transparency, flexibility of labour market, tax burden, development of the banking sector and credit availability, infrastructure and IT, foreign investment regime and trade liberalisation in Chile.

Chile Business Environment Contents

  • Chile's Business Environment Risk Rating with SWOT Analysis
    Short and long-term business environment risk ratings for Chile, benchmarked against ratings for North and South America and neighbouring countries.
  • Country Competitiveness for Chile
    Competitiveness of Chile's business operating environment in supporting corporate growth and profitability over the 5-year forecast horizon, compared with regional neighbours.

Coverage of Key Business Environment Issues in Chile's Domestic Environment

Transparency, cronyism and corruption; labour market flexibility; corporate tax burden; interest rate levels; access of private sector to lines of credit; sophistication of banking sector and stock market; levels of business confidence; infrastructure and IT

  • Foreign Direct Investment in Chile
    Analysis of foreign investment regime, foreign ownership laws; attractiveness of business environment to foreign investors; review of major foreign direct investments over the last 24 months, and of strategic sectors attracting most interest
  • Foreign Trade with Chile
    Analysis of trading environment, government trade policy, liberalisation measures, tariffs and membership of trade areas

Chile's Key Industry Sectors

Which industry sectors in Chile will grow fastest, and where are the major investment opportunities in the Chilean market?

BMI targets investment opportunities in Chile's high growth industries, including automotives, food and drink, infrastructure, oil and gas, pharmaceuticals and healthcare, telecommunications and IT.

Coverage of Chile's Key Industry Sectors - Chilean Market Overview

Size, value and structure of industry; impact of liberalisation and privatisation on sector performance and prospects; friendliness of business environment

  • Latest Developments in Chile
    Review of latest projects, deals, privatisations, mergers and acquisitions, and implications for sector performance; company rankings for national and multinational companies in Chile; main industry players by local sales, employee size, market share and main brands, products and services
  • 5-year Industry Forecast for Chile
    Historic dataset (2003-2007) and BMI forecasts through end-2012, covering headline industry data broken out by sub sector

Key Benefits

  1. Target strategic sector-by-sector opportunities in Chile's high growth industries, attracting public expenditure and foreign investment; identify key players and competitors driving growth, investment and business opportunities.
  2. Benefit from competitive intelligence on top national and multinational companies operating in Chile's major industry sectors, including analysis of recent trends in sales and market share, company strategies, product launches and latest deals.

Who buys the North and South America Business Forecast Reports?

The Chile Business Forecast Report is an essential tool for CEOs, Chairmen, Finance Directors/CFOs, Managing Directors, Marketing/Sales Directors with commercial interests in Chile.

Our Business Forecast Reports are relied upon by corporates, banks, government departments and multinational organisations around the world.

Business Monitor International's Business Forecast Report subscribers include:

ABB Mexico, SA de CV, American Express Argentina, American Honda Motor Co Inc, Ansa Technologies Ltd, Antigua Commercial Bank, ATCO Structures Inc, Atlas Copco Chilena, Banco de Mexico, BASF Interservicios SA de CV, Bristol Myers Squibb, Carl Zeiss de Mexico SA de CV, Chrysler LLC, Coca-Cola Servicios de Colombia, Colgate-Palmolive CA, Glaxosmithkline Chile Ltda, Hyatt International, Lafarge SA, Levi Strauss Mexico, Merck SA, Merrill Lynch - Brazil, Siemens S.A. de C.V., Sony Ericsson, Standard Chartered Bank, Unilever Caribbean, West Indies Oil Company 

 

" In my job as Planning Manager it is key to be permanently updated on the trends and expectations of the economic performance of the country. BMI's report provides a great overview of how the best economists see the economic future of our country. I am always interested in reading the Central Economic Forecast and in using the Macroeconomic Data and Forecast in my planning process. "
Treasury Manager, Janssen Cilag SA, Colombia.

BMI's Executive Summary for Chile

[TOP]

Tough Tests In 2008

After accelerating in H106, the economy has begun to slow, and we have revised down our end-2007 real GDP forecast from 5.9% to 5.7%, which is still considerably higher than the 4.0% registered in 2006. We expect to see a further moderation in economic activity over the forecast period. Chile's political backdrop continues to be very stable, despite a continued decline in President Michelle Bachelet's popularity. Indeed, the transportation problems in the country's capital, combined with protests over wages and general discontent with the levels of income inequalities will continue to weigh on the government. On a more positive note, Chile continues to set the example for Latin American countries when it comes to our Business Environment Ratings and has recently made efforts to forge stronger trade ties with Asia and the rest of North and South America.

While the Transantiago transport issue continues to be a central theme in the political sphere, and has thus weighed on President Michelle Bachelet's popularity, other political developments have also come to the forefront of the political debate. Spiralling food price inflation is hurting the real wages of poorer workers, who are unhappy at the still-high levels of income inequality in the relatively prosperous country. We believe this could prove to be Bachelet's next major political challenge. Meanwhile, political tensions with neighbouring Peru, which we felt may have been another obstacle for the Bachelet government, appear to have calmed.

The Chilean economy performed well in Q207, with a stronger-than-expected growth rate of 6.1% year-on-year (y-o-y). However, we are expecting the Q307 growth figure to disappoint, with economic activity slowing. Going forward, a test will be whether the economy can overcome the aggressive interest rate hikes undertaken in Q307. While monetary policy was supportive of higher growth rates at the start of 2007, when the Banco Central de Chile cut rates from 5.25% to 5.00% in January, at 5.75% the interest rate bias has now changed significantly to the upside.

The Chilean government has continued to push forward with its efforts to improve its business environment and has recently taken part in various international meetings with its Latin neighbours. Peru and Chile have recently discussed forming an alliance between their business sectors in order to help tap into Asian markets. Energy shortages from Argentina may also adversely effect Chile's industrial sector. In the long run, energy shortages will force the government to diversify its energy suppliers, a task it has already embarked on, with talks with Brazil and Bolivia already underway.

Read about our other Business Forecast Reports  

Asia

Australia, Bangladesh, China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Vietnam

Europe

Bosnia & Herzegovina, Bulgaria, Caucasus, Croatia, Cyprus, Czech Republic, Estonia, Greece, Hungary, Kazakhstan & Central Asia, Latvia, Lithuania, Macedonia, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Ukraine

Middle East and Africa

Angola, Bahrain, Botswana, Cameroon, Cote d'Ivoire, Egypt, Ethiopia, Francophone West Africa, Ghana, Iran, Iraq, Israel, Jordan, Lebanon & Syria, Kenya, Kuwait, Mozambique, Namibia, Nigeria, North Africa, Oman & Yemen, Qatar, Saudi Arabia, South Africa, Sudan, Tanzania, Turkey, UAE, Uganda, Zambia, Zimbabwe

North & South America

Argentina, Brazil, Chile, Colombia, East Caribbean, Mexico, Peru, Trinidad & Tobago, Venezuela, West Caribbean

 

Business Monitor International

Business Monitor International
A Market Leader in Country Risk, Industry Intelligence and Company Research

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BUSINESS MONITOR INTERNATIONAL's country risk analysis and forecasts, market research on leading industries, and multinational company research is relied upon by corporates, banks, government departments and multilateral organisations in over 125 countries around the world.

Country Risk Analysis and Forecasts
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has for 25 years specialised in political risk analysis, financial markets analysis, and macroeconomic forecasts on 175 global markets.

Industry Intelligence and Market Research
BMI's industry research covers Automotives; Banking; Chemicals; Defence & Security; Food & Drink; Freight Transport; Information Technology; Infrastructure; Insurance; Mining; Oil & Gas; Petrochemicals; Pharmaceuticals & Healthcare; Power; Telecommunications, and Tourism.

Company Research
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