Chile

GDP (US$ Billion)

277.04 (2017)

World Ranking 42/192

GDP Per Capita (US$)

15,070 (2017)

World Ranking 57/192

Economic Structure

(in terms of GDP composition, 2018)

Services
(57.89%)
Industry
(29.96%)
Agriculture
(3.64%)

External Trade (% of GDP)

56.1 (2016)

Currency (Period Average)

Chilean Peso

648.83 per US$ (2017)

Political System

Multiparty republic

Overview

Sound economic policies, maintained consistently since the 1980s, have contributed to steady economic growth, poverty reduction and a rise in foreign investment. The Chilean government conducts a rule-based countercyclical fiscal policy, accumulating surpluses in sovereign wealth funds during periods of high copper prices and economic growth and allowing deficit spending only during periods of low copper prices and growth. Chile has a market-oriented economy characterised by a high level of foreign trade and a reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. Exports account for more than a quarter of the economy, with commodities making up some around 75% of total exports. Over the last several years, Chile has signed free trade agreements (FTAs) with the European Union (EU), South Korea, Mainland China and Japan, among other countries. In May 2010, Chile became a full member of the Organisation for Economic Co-operation and Development (OECD) after a two-year period of compliance with the organisation’s mandates. Looking ahead, encouraging innovation, improving the links between education and the labour market and promoting the participation of women in the labour market will be essential for improving long-term growth prospects. On the social front, enhancing the quality of health and education services and reducing constraints to access to basic services through implementation of well-targeted social policies will be key to reducing the remaining poverty and strengthening the middle class.

Sources: World Bank, Fitch Solutions

 

Major Economic/Political Events and Upcoming Elections

May 2013
Chile, Colombia, Mexico and Peru agreed to do away with most of the tariffs on trade between their countries, hailing the move as a historic step towards regional integration.

October 2015
Former president Michelle Bachelet announced the creation of two new marine reserves in the South Pacific. Commercial fishing had been banned around Easter Island.

November-December 2017
Sebastián Piñera won Chile's presidential election.

August 2018
Piñera announced plans to reform the state’s tax system.

December 2018
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) – also known as TPP11 – was ratified by the required number of states on November 15, 2018 and came into force on December 30, 2018. The CPTPP encompasses 11 states (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam) and supersedes a number of existing FTAs that are in place (Chilean FTAs with Japan and Canada, for example). The CPTPP is beneficial for businesses as this gives them tariff-free access to a wider consumer base that would enable them to expand their sales.

July 2019
Chilean authorities unveiled plans to open an international tender for Austral Network, which includes the Carlos Ibáñez del Campo Airport in Punta Arenas. Considering the end of the current concession of the Punta Arenas airport complex, the Airports Directorate of the Ministry of Public Works had developed the Referential Extension and Improvement Project for the airport. The Carlos Ibáñez del Campo Airport had seen a growth rate of more than 7% in the last 20 years. The current airport had an area of 6,700sq m and the new works would increase the area to 16,000sq m. In the new 15-year concession period to 2037, the airport is likely to receive 2.3mn passengers. The works are part of Piñera's Airports Plan.

November 2019
Construction is progressing on the expansion of Arturo Merino Benítez International Airport in Santiago, Chile, with completion due in 2021, according to the Ministry Of Public Works, which is executing the project. The USD700 million project includes the construction of a new international passenger terminal, the upgrade of the existing passenger terminal and other installations. The project would allow the airport to increase its capacity to accommodate 30 million passengers annually by 2030.

November 2019
Mainstream Renewable Power had reached financial close on the first phase of the USD1.7 billion Andes Renovables wind and solar power project in Chile. The 1.3GW Andes Renovables is a three phase wind and solar generation platform, comprising seven wind and three solar photovoltaic (PV) power plants. All the plants in phase one are expected to become operational in 2021.

Sources: BBC Country Profile – Timeline, Fitch Solutions

Major Economic Indicators

Graph: Chile real GDP and inflation
 
Graph: Chile real GDP and inflation
 
Graph: Chile GDP by sector (2018)
 
Graph: Chile GDP by sector (2018)
 
Graph: Chile unemployment rate
 
Graph: Chile unemployment rate
 
Graph: Chile current account balance
 
Graph: Chile current account balance
 

e = estimate, f = forecast
Sources: IMF, World Bank, Fitch Solutions
Date last reviewed: November 10, 2019

External Trade

Merchandise Trade

Graph: Chile merchandise trade
 
Graph: Chile merchandise trade
 
 

Source: WTO
Date last reviewed: November 10, 2019

Graph: Chile major export commodities (2018)
 
Graph: Chile major export commodities (2018)
 
Graph: Chile major export markets (2018)
 
Graph: Chile major export markets (2018)
 
Graph: Chile major import commodities (2018)
 
Graph: Chile major import commodities (2018)
 
Graph: Chile major import markets (2018)
 
Graph: Chile major import markets (2018)
 

Sources: Trade Map, Fitch Solutions
Date last reviewed: November 10, 2019

 

Trade in Services

Graph: Chile trade in services
 
Graph: Chile trade in services
 
 

e = estimate
Source: WTO
Date last reviewed: November 10, 2019

Trade Policies
  • Chile has been a member World Trade Organization (WTO) since January 1, 1995. Importers are not subject to any registration requirements. However, they are required to hire an accredited customs broker to enter the merchandise if the free on board (FOB) value of such merchandise is higher than USD500. The use of a customs broker is not mandatory in several other instances, including merchandise entering a free trade zone (FTZ).

  • Chile adopts the Harmonised System and affords most favoured tariff treatment to all its trading partners. Virtually all imports are subject to a most favoured nation duty of 6.0% ad valorem. Apart from import duties, products imported or circulated in Chile are essentially subject to a value-added tax (VAT) of 19% on domestic goods as well as excise taxes and other charges, including an airport tax.

  • Chile does not have any import quotas in place, neither does it impose any licensing requirements on imports or have any pre-shipment inspection requirements. However, certain goods require approval or certification prior to import, while other goods require approval or certification for customs clearance.

  • Over the past two decades, Chile has developed an extensive network of FTAs with a range of partner countries in the Americas, Asia, Europe and the Pacific. Specifically, Chile has signed FTAs with more than 90% of its trade partners, including Australia, Mainland China, Hong Kong, India, Japan, Mexico, the United States, the EU and South Korea. Moreover, Chile is the only member of the original Trans-Pacific Partnership (TPP) Agreement to have an FTA in place with every other TPP signatory. Although United States President Donald Trump signed an executive order formally withdrawing the United States from the trade deal in January 2017, the remaining 11 TPP nations officially agreed on key aspects of the trade pact on November 11, 2017 and signed the document in March 2018. The CPTPP, also known as TPP11, was ratified by the required number of states (seven states as of November 15, 2018) and came into force on December 30, 2018.

  • Chile does not impose any limits on the amount of currency derived from trade operations that can be brought into or taken out of the country, but Chilean exporters and importers with a total export or import value of USD5 million or more on an FOB basis in any single year are required to provide certain information to Chile's central bank.

  • Chilean standards and technical regulations do not distinguish between foreign and domestic goods. So far, Chile has issued more than 1,000 technical regulations covering a broad spectrum of products. Standards are voluntary and are adopted through consensus among parties from the public and private sectors who are invited to participate in the consultations. The National Institute for Standardisation has overall responsibility for the elaboration of standards. Chile also has labelling regulations in place for a wide range of products. In general, products commercialised in Chile must be labelled with the name or registered brand, the address of the producer or importer, the country of origin and care instructions. The information included must be accurate and provided in Spanish.

  • There are three main FTZs in Chile: the FTZ of Iquique (ZOFRI) in the Tarapacá region in the far north, the Free Zone of Punta Arenas (PARANEZON) in the Magallanes province in the far south and the Arica FTZ (located in northern Chile near the Peruvian border). ZOFRI encompasses the free ports of Arica and Iquique and is a major entry point for products bound for Bolivia and Peru, Paraguay and northern Argentina. Each FTZ is equipped with manufacturing, packaging and exporting facilities. Imports entering ZOFRI and PARANEZON are duty free; however, imports leaving the FTZs to enter the Chilean market pay full tariff and VAT charges.

  • The broad range of FTAs reduces Chile's average tariff rate, which, at 1.8%, is the third lowest in Central and South America (Peru leads the way with an average tariff of 1.4%, followed by Guatemala at 1.5%).

  • In order to protect domestic industries, the Chilean government has imposed various anti-dumping measures, particularly on the steel and metal sectors. On October 22, 2016, the Chilean authorities imposed a provisional anti-dumping duty on the imports of certain steel wire from Mainland China. The rate of duty is 40.6%. On November 22, 2017, the Chilean government imposed a 22.9% duty on certain steel bars from Mainland China in order to counter allegations of dumping. However, the duty has now lapsed, having remained in place for one year.

  • The Chilean government has also imposed various safeguards concerning agricultural sectors to protect domestic industries. The Chilean government regularly adjusts the discounts on imported sugar and wheat or meslin flour. These discounts help mitigate some of the effects of the price floors imposed by Chile (which is above the average customs rate). The cost of importing sugar to Chile may thus increase or decrease on the back of government decisions.

Sources: WTO – Trade Policy Review, Fitch Solutions

Trade Agreement

Trade Updates

Chile is party to 21 FTAs covering 60 nations. Of those FTAs, the largest eight constitute 85.36% of Chile's total trade activities (in terms of imports and exports). The remaining FTAs (excluding FTAs made redundant – such as the FTA with Mexico, which has been superseded by the Pacific Alliance, or PA, FTA) cover 4.87% of Chile's trade relations. This indicates that 90.23% of Chile's trade occurs with its FTA partners, leaving Chile's trade interaction with the rest of the world at a low 9.77%. Chile also has five preferential trade agreements, two of which have been made secondary to FTAs (Venezuela and Argentina). The remaining three preferential trade agreements cover Bolivia, Ecuador and India.

 

Multinational Trade Agreements

Active

  1. Chile-Mainland China FTA and Economic Integration Agreement (EIA): On November 18, 2005, Chile signed an FTA with Mainland China, which came into force on October 1, 2006. Roughly half of Mainland China's exports to Chile in value terms were afforded duty-free treatment when the agreement entered into force. Only some 3.0% of Mainland China's exports are excluded from the scope of the FTA. In November 2017, the China-Chile FTA completed its upgrade, making it Mainland China's first FTA upgrade with a Latin American country. Furthermore, on April 13, 2008, Mainland China and Chile signed the supplementary agreement on service trade. According to the agreement, Mainland China's 23 sectors and sub-sectors – including service in the computing, management and consulting, real estate, mining, environment, sports and air transport sectors – and Chile's 37 sectors and sub-sectors – including service in the legal service, construction and architecture, engineering, computing, research and development, real estate, advertisement, management and consulting, mining, manufacturing, leasing, distribution, education, environment, tourism, sports and air transport sectors – were also opened up under the WTO commitments.

  2. Chile-Hong Kong FTA and EIA: Hong Kong and Chile signed a bilateral FTA on September 7, 2012, which became effective on October 9, 2014. Under the agreement, approximately 88% of total Chilean goods imports from Hong Kong benefit from duty-free treatment with immediate effect and about 97.7% of all goods imports will enjoy such treatment by the third year. The remaining 2.3% of tariff lines have been excluded from the agreement and will continue to be subject to regular most favoured nation rates of duty, including certain cereals, sugars, textiles, apparel, steel products, concrete, used tyres and household appliances.

  3. Chile-Southern Common Market (Mercosur): Chile is an associate nation in both Mercosur and the Andean community, which encompasses nine of the 10 biggest economies on the continent. Despite non-membership in these organisations, Chile has entered into FTAs with both trade blocs, giving it similar (if not identical) economic advantages to those which it would accrue with full membership, but with a less binding political commitment.

  4. Chile-United States FTA and EIA: The agreement came into force in 2004 and as of January 1, 2015, all qualifying products are duty free. To be eligible for tariff-free treatment under the agreement, products must meet the relevant rules of origin. The agreement also provides favourable access for service suppliers. It guarantees protection to United States investors and United States copyrights, trademarks and patents registered in Chile. In addition, Chile has opened up significant government procurements to United States bidders. Principal United States goods exports to Chile include mineral fuel and oil, machinery and parts, aircraft and parts, vehicles and electrical machinery. Principal United States exports of services to Chile include travel, transport, telecommunications and business services.

  5. Chile-EU FTA and EIA: EU states (particularly Germany, France, Spain, the Netherlands and the United Kingdom) are major trade partners and the EIA with Chile ensures preferential access to this large market. Bilateral trade between the EU and Chile has more than doubled since the FTA came into effect.

  6. PA FTA and EIA: The PA trade bloc consists of Chile, Colombia, Mexico and Peru. It is an important trade agreement for Chile and assists with promoting regional growth. The PA focuses on boosting external trade with strategic partners, including those in Asia, as well as adopting a business-friendly agenda aimed at incentivising investment in the region to enable companies to better access Latin American markets and create intra-regional supply chains. PA members represent nearly 36% of Latin American GDP and exported approximately USD1 trillion in 2015.

  7. Chile-Japan FTA and EIA: The FTA with Japan was finalised in 2007 and will be affected by the CPTPP.

  8. CPTPP: The agreement – comprising Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam – is in effect. The agreement was ratified in Q418, with the deal representing 13.4% of global GDP, making it the third largest trade agreement after the United States-Mexico-Canada Agreement and the EU. The agreement aims to cut tariffs, improve access to markets and set common ground on labour and environmental standards as well as intellectual property protections.

Sources: WTO Regional Trade Agreements Database, Fitch Solutions

Investment Policy

Foreign Direct Investment

Graph: Chile FDI stock
 
Graph: Chile FDI stock
 
Graph: Chile FDI flow
 
Graph: Chile FDI flow
 

Source: UNCTAD
Date last reviewed: November 10, 2019

 

Foreign Direct Investment Policy

  1. Encouraging foreign investment is a priority in Chile's national growth strategy, with foreign direct investment (FDI) inflows having contributed enormously to the country's economic growth since the first push to attract foreign participation in the 1980s. Major sectors such as mining attract considerable interest from foreign investors, as does the country's burgeoning tourism sector and large agricultural sector.

  2. Chile offers attractive investment openings in sectors that include mining, services, food, infrastructure, tourism and energy. Under the Foreign Investment Statute regime, foreign investors can opt to sign a contract with the state of Chile, establishing their rights and obligations, which authorises the transfer of capital and other forms of investment into the country.

  3. Generally, there are no restrictions on most economic activities and businesses may be 100% owned by foreigners, except with respect to air transport, domestic shipping, mass media and fishing. Some strategic activities are also reserved for the state; these include the exploration and exploitation of mineral deposits situated in maritime boundaries subject to the national jurisdiction or those located in areas classified by law as of importance to national security.

  4. Certain industries require licensing for operations. The telecommunications industry regulators, for example, have a limited number of licences that it may issue at one time.

  5. Some minerals sectors may be subject to government intervention and companies may be obliged to work in collaboration with state-owned entities.

  6. Foreign investment in some sectors of the economy can be screened by the government. Foreign ownership is permitted across almost all industries. Exceptions exist with sectors designated as strategic in nascent resource-related industries, transportation and farmland. In such industries, foreign ownership is generally capped at 49%. Nuclear energy and mining industries are restricted to government/state control – companies may, however, be granted concessions from the government for their operation.

Sources: WTO Trade Policy Review, ITA, US Department of Commerce

 

Free Trade Zones and Investment Incentives

Free Trade Zone/Incentive Programme Main Incentives Available
FTZ of Iquique (northern Chile) Exemption from corporate tax and custom duties, such as 0% value-added tax on first sales and 0.8% import tax.
Free Zone of Punta Arenas (southern Chile) Exemption from corporate tax and custom duties
Arica FTZ (northern Chile) Exemption from corporate tax and custom duties

Source: Fitch Solutions

Taxation – 2019
  • Value Added Tax: 19%
  • Corporate Income Tax: Variable dependent on regime applicable

Source: Servicio de Impuestos Internos

 

Important Updates to Taxation Information

  • The government has introduced a bill to parliament for discussion; The bill aims to restructure and amend the tax code and structure, placing particular emphasis on:
     
    • Replacing the dual regime corporate tax system them with a single method of taxation.
    • Denying the 4% Withholding Tax (WHT) rate on interest paid abroad in cases where the foreign bank or financial institution is not the final recipient of the payment.
    • Improving the existing Foreign Tax Credit rules by amending or repealing the current distinction placed upon a tax treaty and non-tax treaty jurisdiction.
    • Implementing a 35% rate in cases where domestic thresholds need to be calculated.
    • Amending or introducing the ability to incorporate foreign tax in Chile.
    • Reconsidering the legal concept around the definition of what is considered a permanent establishment of a foreign entity within Chile. The new legal concept follows previous criterions set forth by the Chilean tax authorities, aligned with OECD criterions.
    • Proposing a 10% sole, indirect and substitute tax to digital services provided by foreign providers.
    • Repealing the 4% limitation on royalty payments abroad.
  • As of January 1, 2019, interest will be subject to 10% WHT as a result of a number of double-tax avoidance treaties. Due to the nature of these treaties, the rate of WHT owed by foreigners will vary as according to the treaty.

 

Dual Tax Regime

Tax Rate and Base
Tax Type Applicable To Regime A Regime B
First Category Tax (FCT) All 25% 27%
Global Complementary Tax (GCT) Chilean owners 0-35% (progressive) 0-35% (progressive)
Additional WHT Foreign shareholders 35% on taxable earnings 35%
Possible tax credit on GCT Chilean shareholders 100% of FCT 65% of FCT
Possible tax credit on WHT Foreign shareholders 100% of FCT 65% of FCT
Total tax burden on GCT Chilean shareholders 25% (at 0% GCT), 35% with credit (at 35% GCT), 60% without credit 27% (at 0% GCT), 44.45% with credit (at 35% GCT), 62% without credit
Total tax burden on GCT Foreign shareholders 35% with credit, 60% without credit 44.45% with credit, 62% without credit

Note: In addition to the regime-specific set of tax rates, all businesses will still need to pay a standard set of taxes.

 

Business Taxes (general)

In addition to the regime-specific set of tax rates, all businesses will still need to pay a standard set of taxes.

Type of Tax Tax Rate and Base
Mining Tax 0-14% on corporate income of mining companies, variable according to sales. May be deducted as an expense from corporate income tax.
Social security contributions (capped at a fluctuating amount according to an inflation-adjusted monetary unit) - 0.95% basic contribution on gross salaries towards accident insurance

- 0.0-3.4% variable on gross salaries towards accident insurance according to the risk level of the work

- 2.4% on gross salaries towards unemployment insurance

- 1.15% on gross salaries towards life and disability insurance
VAT 19% on sale of goods and services
Capital duty 0.25-0.5% on tax equity (up to approximately USD500,000).
Property Tax - 1% on the value of rural property
- 1.2% on the value of non-rural property

Source: Servicio de Impuestos Internos
Date last reviewed: November 10, 2019

Foreign Worker Requirements

Localisation Requirements

Labour regulations continue to restrict the employment of foreign nationals, preventing a large increase in the country's migrant population. The labour law stipulates that at least 85% of a company's workforce must be Chilean, if the business employs more than 25 workers.

 

Visa/Travel Restrictions

Chilean work visas are regulated by the need for a contract prior to application. The bureaucratic process to obtain work permits and residence visas for foreign nationals in Chile is, nonetheless, relatively simple. Eligibility is generally dependent on skills and education, which facilitates the flow of highly skilled workers. The visa process is easier when the applicant is outside the country, as making changes to a visa status once inside the country can be an arduous process and is subject to delays.

Visas, such as the work contract visa and the temporary resident visa, offer provisions for dependents and entitle holders to apply for permanent residency after two years. Foreign employees and their dependents can also gain entry based on FATs that Chile holds with numerous countries. The permitted length of stay varies from six months to one year depending on the profession and position of the applicant. This offers a larger variety of options for companies wishing to hire foreign workers.

 

Taxes on Foreign Labour

Chile differentiates between resident and non-resident individuals for tax purposes. Residents (those in Chile for longer than six months in a calendar year) are taxed on their worldwide income, while non-residents are only taxed on Chile-sourced income. Foreign residents are taxed on Chile-sourced income for the first three years, after which they are taxed on worldwide income. Individual income tax is paid based on the accrual of monthly taxable units (MTUs), which may be adjusted on a month-by-month basis in accordance with inflation. In December 2018, one MTU was worth around USD74.46. The tax regime on individuals in Chile is relatively unfavourable, with tax rates charged progressively from 0% to 35%. The top rate is among the highest levied in any Latin American state and will cause difficulties for businesses attempting to attract well-paid foreign workers as they may require higher salaries to offset this tax burden. In accordance with the tax reform approved in 2014, the highest marginal rate was reduced to 35% (effective from January 1, 2017), down from 40%.

Sources: Ministry of the Interior and Public Security, Fitch Solutions

Risks

Sovereign Credit Ratings

  Rating (Outlook) Rating Date
Moody's A1 (Stable) 26/07/2018
Standard & Poor's A+ (Stable) 13/07/2017
Fitch Ratings A (Stable) 30/08/2019

Sources: Moody's, Standard & Poor's, Fitch Ratings

 

Competitiveness and Efficiency Indicators

  World Ranking
2018 2019 2020
Ease of Doing Business Index 55/190 56/190 59/190
Ease of Paying Taxes Index 72/190 76/190 86/190
Logistics Performance Index 34/160 N/A N/A
Corruption Perception Index 27/180 N/A N/A
IMD World Competitiveness 35/63 42/63 N/A

Sources: World Bank, IMD, Transparency International

 

Fitch Solutions Risk Indices

  World Ranking
2017 2018 2019
Economic Risk Index Rank N/A 45/202 41/201
Short-Term Economic Risk Score 67.3 70.2 68.8
 
Long-Term Economic Risk Score 67.2 66.6 68.0
Political Risk Index Rank N/A 22/202 21/201
Short-Term Political Risk Score 70.6 74.8 77.1
Long-Term Political Risk Score 83.2 83.2 83.2
Operational Risk Index Rank N/A 40/201 39/201
Operational Risk Score 64.8 64.1 64.8

Source: Fitch Solutions
Date last reviewed: November 10, 2019

 

Fitch Solutions Risk Summary

ECONOMIC RISK

Chile recovered impressively from the global financial crisis in 2008-2009 and the devastating earthquake in February 2010. Chile will continue to rely heavily on commodity export earnings, particularly from its copper mining sector, which raises the risk of commodity price shocks affecting overall economic growth. Although Chile will begin to move away from copper dependence, the process will take some years to feed through to a broader economic base. Indeed, near-term growth prospects have deteriorated since the wake of the protests in October 2019 and the impact of global trade uncertainty. While fiscal concessions should boost private consumption, fixed investment will likely stall as uncertainties weigh on business confidence. In addition, public debt is seen rising on a wider fiscal deficit. That said, cheaper credit conditions and an upcoming tax reform could provide sufficient buffers for the economy.

OPERATIONAL RISK

Chile's open economy and strong democratic institutions make it one of the most stable countries for doing business in the region. Much of its appeal lies in the low risks that businesses face from regional criminal activity, which translates to lower security costs and reduced risk of implication in financial crime. The country boasts a wealth of natural resources and the strong rule of law has also provided a basis for economic growth and significant inflows of FDI, which has been further encouraged by the signing of numerous free trade deals with key regional and global partners. Logistics infrastructure is well developed and more reliable than elsewhere in Central and South America and while the labour force is somewhat smaller than in countries such as Brazil, Chile benefits from a better-educated workforce and less regulation in comparison with regional peers.

Source: Fitch Solutions
Data last reviewed: December 5, 2019

 

Fitch Solutions Political and Economic Risk Indices

Graph: Chile short term political risk index
 
Graph: Chile short term political risk index
 
Graph: Chile long term political risk index
 
Graph: Chile long term political risk index
 
Graph: Chile short term economic risk index
 
Graph: Chile short term economic risk index
 
Graph: Chile long term economic risk index
 
Graph: Chile long term economic risk index
 

100 = Lowest risk; 0 = Highest risk
Source: Fitch Solutions Political and Economic Risk Indices
Date last reviewed: November 10, 2019

 

Fitch Solutions Operational Risk Index


 
Operational Risk Labour Market Risk Trade and Investment Risk Logistics Risk Crime and Security Risk
Chile Score 64.8 63.8 68.6 62.9 63.8
Central and South America Average 46.0 49.5 45.2 46.2 43.0
Central and South America Position (out of 20) 1 1 1 2 1
Latin America Average 48.4 50.7 48.9 44.6 49.3
Latin America Position (out of 42) 1 1 2 2 4
Global Average 49.7 50.3 49.8 49.3 49.2
Global Position (out of 201) 39 26 34 54 51

100 = Lowest risk; 0 = Highest risk
Source: Fitch Solutions Operational Risk Index

Graph: Chile vs global and regional averages
 
Graph: Chile vs global and regional averages
 
Country/Region
 
Operational Risk Index
 
Labour Market Risk Index
 
Trade and Investment Risk Index Logistics Risk Index Crime and Security Risk Index
Chile 64.8 63.8 68.6 62.9 63.8
Costa Rica 56.3 53.6 60.3 52.0 59.3
Panama 55.4 47.6 56.4 67.0 50.6
Uruguay 54.4 51.1 52.1 53.3 61.3
Mexico 52.9 60.0 58.2 57.3 35.9
Colombia 51.2 55.4 54.7 51.7 43.1
Brazil 50.1 46.7 48.4 53.8 51.5
Argentina 49.0 52.8 42.4 50.4 50.4
Peru 48.1 57.8 51.5 42.7 40.5
Ecuador 46.2 54.1 37.6 50.8 42.4
El Salvador 42.6 44.9 44.5 47.8 33.0
Suriname 42.3 50.1 35.6 41.0 42.5
Belize 42.1 51.9 38.1 40.7 37.8
Paraguay 40.8 42.6 44.0 39.0 37.6
Guatemala 40.7 43.8 44.7 40.9 33.5
Honduras 39.8 39.8 46.9 39.9 32.7
Nicaragua 39.7 41.6 39.1 36.9 41.1
Bolivia 37.4 42.1 28.7 38.1 40.6
Guyana 36.3 42.8 38.3 29.5 34.6
Venezuela 29.0 47.7 13.1 28.3 26.8
Regional Averages 46.0 49.5 45.2 46.2 43.0
Emerging Markets Averages 46.9 48.5 47.4 45.8 45.9
Global Markets Averages 49.7 50.3 49.8 49.3 49.2

100 = Lowest risk; 0 = Highest risk
Source: Fitch Solutions Operational Risk Index
Date last reviewed: November 10, 2019

Hong Kong Connection

Hong Kong’s Trade with Chile

Graph: Major export commodities to Chile (2018)
 
Graph: Major export commodities to Chile (2018)
 
Graph: Major import commodities from Chile (2018)
 
Graph: Major import commodities from Chile (2018)
 

Note: Graph shows Hong Kong imports from/exports to Chile (by consignment)
Date last reviewed: November 10, 2019

Graph: Merchandise exports to Chile
 
Graph: Merchandise exports to Chile
 
Graph: Merchandise imports from Chile
 
Graph: Merchandise imports from Chile
 

Note: Graph shows Hong Kong imports from/exports to Chile (by consignment)
Exchange Rate HK$/US$, average
7.75 (2014)
7.75 (2015)
7.76 (2016)
7.79 (2017)
7.83 (2018)
Sources: Hong Kong Census and Statistics Department, Fitch Solutions
Date last reviewed: November 10, 2019

  2018 Growth rate (%)
Number of Chilean residents visiting Hong Kong 15,596 8.2
Number of Latin American residents visiting Hong Kong 190,316 -2.8

Source: Hong Kong Tourism Board
Date last reviewed: November 10, 2019

 

Commercial Presence in Hong Kong

  2018 Growth rate (%)
Number of Chilean companies in Hong Kong N/A
 
N/A
 
- Regional headquarters
- Regional offices
- Local offices

 

Treaties and agreements between Hong Kong and Chile

As an important step in accommodating greater synergies, Hong Kong signed a FTA with Chile on September 7, 2012, which came into force on October 9, 2014. Moreover, Hong Kong and Chile signed an investment promotion and protection agreement on November 18, 2016 – an investment agreement under the FTA between Hong Kong, Mainland China and Chile – which is now pending entry into force.

Sources: UNCTAD, Fitch Solutions

 

Chamber of Commerce or Related Organisations

Commercial and Economic Section in Hong Kong

Address: Room 05, 30/F, Enterprise Square Three, 39 Wang Chiu Road, Kowloon Bay, Kowloon, Hong Kong

Email: info@chilehkcc.org

Source: Chile Hong Kong Chamber of Commerce

 

Hong Kong-Latin America Business Association (Chile)

Email: contact@hklaba.com

Tel: (56) 2 2246 8268

Website: www.hklaba.com

Please click to view more information.

Source: Federation of Hong Kong Business Association

 

Chilean Consulate General in Hong Kong

Address: Unit 3005, 30/F, Enterprise Square Three, 39 Wang Chiu Road, Kowloon Bay, Kowloon, Hong Kong

Email: cghonkong@minrel.gob.cl

Tel: (852) 2827 1826 / 2827 1748

Fax: (852) 3152 2653

Source: Consulate General of Chile in Hong Kong

 

Visa Requirements for Hong Kong Residents

Entry is visa-free for up to 90 days.

Source: Visa on Demand
Date last reviewed: November 10, 2019

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