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MARCH, 2014 ECONOMIC OUTLOOK AND BUSINESS OPPORTUNITIES IN CHILE
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Population16,572,475Area 756,096.3 km2 GDP PPP $319.4 billion GDP Per Capita PPP $18.354 Unemployment Rate (Average) 6.0 % Economic Growth 4.1% 2013 Inflation 2.8% 2013 Exports $78.8 billion Imports $74.6 billion Current account -3.4 (% of GDP)
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Relative Size of Latin America Economies GDP, Current Prices Billions US$ of 2012 Source: IMF
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Evolution of GDP (% of change) Source: IMF, Central Bank of Chile
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Fuente: FMI
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Source: Banco Mundial
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Fuente: FMI
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Inflation Evolution (% of change, end of period consumer prices ) Source: INE
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General government net debt (Percent of GDP, 2012e) Source: IMF
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Source: Central Bank of Chile Investment Evolution (% of GDP, constant prices)
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Source: INE
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Oct-12
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Trade Evolution (12 month moving average, Millions of US$) Source: Central Bank of Chile
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A country with an open economy: 22 Free Trade Agreements with 60 countries. Turkey Ecuador Colombia Australia Peru Cuba Panama Japan India P-4 China EFTA Korea United States European Union Central America Mexico Canada MERCOSUR Venezuela Bolivia Malaysia Nicaragua Thailand Hong Kong Vietnam 63% of world population 86% of the global GDP 90.5% of Chile´s export markets Agreements In force Agreements signed but not yet in force Agreements under negotiation Globally integrated economy Government of Chile| Foreign Investment Committee
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Main Chilean Exports (Countries) Millions of US$, 2012
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Main Chilean Exports (by Sector) Millions of US$, 2012
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Main Chilean Imports (Countries) Millions of US$, 2012 Source: Central Bank of Chile
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Exports 2011 Imports 2011 Market Diversification of Trade
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Outstanding Business Environment Government of Chile| Foreign Investment Committee Doing Business 2013 Competitiveness Yearbook 2012 (37 out of 185 economies)* *Selected economies. Category Pos. Protecting investors32 Chile leads Latin America. Economic Freedom Index 2013
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Source: SOFOFA Investment Projects By Sector (Mill. Of US$)
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FDI in Latin America and Caribbean, 2012 Gobierno de Chile | Comité de Inversiones Extranjeras Latin America and Caribbean: Largest FDI recipients, 2011-2012 (US$ billion) Variation in FDI flows, 2012 (%) Source: Global FDI fell by 18% in 2012 to US$1.3 trillion, down from US$1.6 trillion in 2011. By contrast, FDI in Latin America and the Caribbean rose by 7.2% to US$232 billion. According to UNCTAD’s estimates for 2012, Chile was for the first time Latin America’s second largest recipient of FDI; the inflow reached US$30.3 billion, the highest ever in the country’s history. Sources: Global Investment Trends Monitor, UNCTAD 2013 / Central Bank of Chile
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Total FDI in Chile, 2003-2012 Gobierno de Chile | Comité de Inversiones Extranjeras Source: Central Bank of Chile FDI in Chile, 2003-2012 (US$ million) In 2012, Chile achieved a new record as a recipient of FDI. According to UNCTAD, Chile was one of the seven economies in which the inflow of FDI showed the highest growth in the last year. In 2012, Chile received FDI worth US$30,323 million; this represented an increase of 32.2% on 2011 and set a new record.
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Chile has 27.5% of world copper reserves (USGS). World´s largest producer: copper (34%), natural nitrates (100%), iodine (58%), Rhenium (52%), Lithium (45%) and 5 th largest silver producer. Mining companies plan to invest US$104 billion during the next eight years. Chile in 5th place in Current Mineral Potential Index (Fraser Institute). Expenditure by mining companies is over US21 billion per year. There are around 4000 supplier companies. Government of Chile| Foreign Investment Committee Mining Opportunities Equipment and supplies. Engineering and consulting. Construction. Production support services. Mining suppliers to create regional headquarters, export and diversify area of activitiy.
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Challenges Chile’s total installed capacity is 17,000MW. Electricity consumption expected to grow 6% to 7% annually. Need to become independent in terms of energy supplies. Need to diversify energy supplies. Government of Chile| Foreign Investment Committee Energy Opportunities Generation: More than 8,000MW of new projects required by 2020. Natural conditions suitable for Non-Conventional Renewable Energies. Transmission challenges.
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Chile has an investment portfolio of an aggregate amount of US$7,7 billion in public tenders. Government of Chile| Foreign Investment Committee Infrastructure Highway Projects Route G21, Access to Ski Centers in the Metropolitican Reigon 87 Américo Vespucio East Highway1,535 Costanera Central Highway 2,065 Santiago Lampa Highway116 Highway Connection between Routes 68 and 78131 Nahuelbuta Highway 259 Industrial Bridge over Bio Bio River 212 San Fernando – Santa Cruz Road151 Subtotal4,556 Main projects in Public Works Concessions System 2013 -2014, figures in USD millions
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FRUITS World´s largest exporter of table grapes, plums and blueberries, and top 3 in avocado, kiwi, raspberries and apples. New opportunities: Berries. Cherries. Walnuts. Government of Chile| Foreign Investment Committee Food industry WINE World´s 5th largest producer. New opportunities: Organic wine. “Functional” foods based on grape sub-products. Grape-seed oil. SALMON FARMING World’s second largest producer. Opportunities: Salmon food. Cage services.
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CHILE – THAILAND TRADING CHILE – THAILAND TRADING (figures in million US$) Source: LegalPublishing
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MAIN PRODUCTS EXPORTED TO THAILAND MAIN PRODUCTS EXPORTED TO THAILAND (figures in million US$) Source: LegalPublishing
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MAIN PRODUCTS IMPORTED FROM THAILAND MAIN PRODUCTS IMPORTED FROM THAILAND (figures in million US$) Source: LegalPublishing
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MAIN EXPORTERS TO THAILAND MAIN EXPORTERS TO THAILAND (figures in million US$) Source: LegalPublishing
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MAIN IMPORTERS FROM THAILAND MAIN IMPORTERS FROM THAILAND (figures in million US$) Source: LegalPublishing
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MAIN DESTINATIONS OF OUR EXPORTS MAIN DESTINATIONS OF OUR EXPORTS (figures in million US$) Source: LegalPublishing
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MAIN ORIGINS OF OUR IMPORTS MAIN ORIGINS OF OUR IMPORTS (figures in million US$) Source: LegalPublishing
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HOW MUCH DO EXPORTS TO THAILAND REPRESENT IN OUR WORLD EXPORTS HOW MUCH DO EXPORTS TO THAILAND REPRESENT IN OUR WORLD EXPORTS (figures in million US$) Source: LegalPublishing 0.32%
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HOW MUCH DO IMPORTS FROM THAILAND REPRESENT IN OUR WORLD IMPORTS HOW MUCH DO IMPORTS FROM THAILAND REPRESENT IN OUR WORLD IMPORTS (figures in million US$) Source: LegalPublishing 1,01%
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MARCH, 2014 ECONOMIC OUTLOOK AND BUSINESS OPPORTUNITIES IN CHILE
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