South American Real Estate News
/ Category / chile economy

Santiago is the 5th richest city in Latin America

Consulting firm Pricewaterhouse Coopers recently ranked the richest cities in the world by measuring economic output and consumer buying power. Santiago ranked 53rd overall, but 5th among other cities in Latin America, after Mexico, Buenos Aires and Sao Paulo and Rio de Janeiro. The survey ranked 151 major cities by dividing the city GDP by the purchasing power of each resident. Tokyo and New York took the top two positions by a high margin: according the report, Tokyo is worth US$1.2 billion and New York US$1.1…

Chile: Interview with Gemines chief economist Alejandro Fernández

Alejandro Fernández has been the chief economist at Gemines since 1990. A graduate of the University of Chile and the University of Rochester, he has also served as an adviser for Chile’s Ministry of the Economy and the World Bank, as well as an academic at the University of Chile. In October, President Sebastian Piñera hailed Chile as an oasis of stability in Latin America. However, the civil unrest that engulfed the country later that month and the subsequent promise of a new constitution have cast…

Chile Stuns Markets as Unemployment Falls, Manufacturing Rises

Chile’s jobless rate fell and manufacturing output rose late in the year, surprising analysts who had forecast a steep downturn as nationwide protests shuttered businesses and delayed investments. The unemployment rate slid to 6.9% in the three months through November from 7% in the month-earlier period, the national statistics institute said Tuesday, far below the 7.6% median estimate of analysts surveyed by Bloomberg. Manufacturing expanded 3.2% in November from a year ago, compared with the median estimate…

Chile to Tap Foreign Investors as Reputation Survives Protests

Chile’s foreign reputation for sound fiscal management has survived the biggest social upheaval in a generation largely intact, market indicators show. The government says it now intends to cash in on that credibility. The South American nation plans to issue $8.7 billion of bonds next year, of which $5.3 billion will be sold abroad, up from about $3 billion this year. Of those foreign bond sales, $3.3 billion will be in dollars and euros and the rest will be denominated in Chilean pesos but targeted…

Foreign direct investment in Chile increases by 64% to USD 10.325 Billion in the first ten months

In October, the net inflow of foreign direct investment reached USD 850 million. At USD10.325 billion, foreign direct investment (FDI) in Chile in the first ten months of this year represented an increase of 64% on the same period last year and was in line with its performance over the past five |years (an average of USD10.584 billion for 2015-2019). According to the Central Bank of Chile, there was a net inflow of USDv850 million in October. The figure reflects a high level of equity contributions, which reached…

Chile was the most stable and prosperous South American country, but heading into 2020, it is collapsing financially. What’s the story?

Before discussing the present [October-Decembrer 2019] events, it is important to note that similar, albeit smaller scale, uprisings in Chile have become somewhat common. Some of the features of these earlier events are similar to what is currently going on. 2010: In the Magallanes region of Chile the natural gas prices are very low, and are heavily subsidised by the national government, through taxation and public monies. As a result of the low prices, construction typically avoids adequate insulation and…

Bloomberg analysis: “Chile seeks to emerge from its crisis but is paying a very high price”

“It is at stake not only for social peace but also for the reputation of Chile’s fiscal prudence that has earned it the highest sovereign debt rating in Latin America,” the agency says. Chile bets on its status as a model example in favor of the market as the government rules out plans to reduce debt in favor of at least $1.5 billion per year in additional social expenses to appease the protesters. In the midst of violent demonstrations that reach a second month, officials are now planning…

Piñera says the Chile protests involved foreign intervention

The Chilean President said that he has received information from the U.S. State Department. suggesting that behind the violence there is more at play than “habitual criminals” Chile’s president Sebastián Piñera said his government is investigating foreign intervention in last month’s violent protests in one of the most prosperous countries in the region. “There’s a lot evidence that behind this situation there are forces that previously they did not know were operating…

Chile’s Success Story Is Difficult to Deny

Weeks after a 3.75% rise in metro fares in Santiago, Chile sparked violent protests by a small group of students that then generated more widespread disruption, mostly peaceful mass protests continue. Some observers have seized on the political crisis to make often-repeated claims that Chile’s free-market model has generated growing inequality and been fundamentally unjust despite having produced greater wealth. Yet such claims are difficult to square with the facts. Since its free-market reforms began in…

Don’t Slay the Chilean Puma

A rewrite of the constitution would destroy the opportunity for the poor. When Chilean President Sebastián Piñera cancelled plans to host the Asia-Pacific Economic Cooperation summit in Santiago this month, he called it “a difficult decision that has caused us a lot of pain.” The pain for Latin America’s most successful economy is only beginning. Negotiations with terrorists and their political representatives seldom end well. Yet that’s what Mr Piñera seems to have in mind. He has opened the door…

Chiles stunning wealth, but poor services behind massive protests

The decision to add 30 pesos to the cost of a ticket on Latin America’s most modern public transportation system this month drew little attention inside or outside Chile, at first. People quietly fumed. A week later, high-school students launched four days of turnstile-jumping protests. Crowds of angry youths built up inside metro stations. It’s not about a 4-cent hike in subway prices With no warning, on the afternoon of Oct. 18, they set fire to stations, then trains. Then grocery, department…

Which countries have the highest public debt levels?

Global debt has climbed at an eye-watering pace over the last decade. According to the International Monetary Fund, global debt climbed to 225% of global GDP in 2017. That’s 12 percentage points higher than the previous record level set in 2009, during the Global Financial Crisis, and many have pointed toward the global debt pile-up, particularly public debt, as the potential culprit for the next global financial crisis. Countries with most public debt Infogram The increase in global debt over the last…

Sebastián Piñera tries to put Chile back on track

A former president returns, with reforms on his mind In his first term in the Moneda palace between 2010 and 2014, Sebastián Piñera, a billionaire businessman of the center-right, oversaw rapid economic growth but failed to inspire popular affection due to a lack of charisma. After an interlude in which Chile swung left under Michelle Bachelet, Piñera has been back as president since March. Second terms often disappoint—Bachelet’s did—but Piñera says he has learned from experience. “There’s no…

Chile’s economic success was no accident

The World Bank and IMF believe that Chile’s economic success is, in large part, due to the neo-liberal, export-oriented policies adopted by the military government back in 1973 and pursued to the present. These are policies based on the underlying principle of free trade and comparative advantage, which underpin the rationale of the GATT and the international trading system. CHILE’S  ECONOMIC MIRACLE  For the European visitor, the area around Chile’s capital city is reminiscent of the southern…

Latam Investor Q3 2018 Report

With 80% of the region’s population going to the polls in 2018, this year was always going to be seminal for Latin America. With elections in Chile, Mexico and Colombia already completed we can now see some outlines appearing on the political map of Latin America for the next few years. Meanwhile, with commodity prices from copper to oil moving upwards, the economic dynamic is also becoming clearer. In Chile and Colombia, right-wing candidates have come back to power. Both are lucky to win an election when…
Visit us on LinkedInVisit us on FacebookVisit us on TwitterVisit us on Pinterest