Chile's position in the global economy

摘要

Chile's foreign-investment regime is one of the most liberal in the world. Generally sound regulation, political and economic stability, and strong growth have helped to boost foreign direct investment (FDI) inflows since the early 1990s. Moreover, Chile's managerial talent and well-qualified labour force (by regional standards), together with a strong rule of law, low crime rates and the country's large network of free-trade agreements, have attracted a growing number of multinationals to locate their Latin American headquarters in the capital, Santiago. Chile will continue to attract substantial FDI inflows. However, limited economic mobility, stagnant wages and low pensions have contributed to widespread protests that began in October 2019, resulting in substantial government restraint towards further economic liberalisation. Basic infrastructure is reaching maturity, and given the almost complete level of economic openness already achieved, there is little scope for further privatisation. Major acquisitions, which were common in the banking, telecommunications and utilities sectors in recent decades, are unlikely to be repeated at such a vigorous pace. This will place the focus of future investment on other sectors, particularly services.