Political Risk Latin America Blog @PolRiskLatam

Can Chile Recapture’Golden Decade’?

Posted in Political Risk by politicalrisklatam on September 6, 2010

by Latin American Chronicle, September 2nd, 2010.

Can Chile recapture the growth of its ‘golden decade’?

Chile’s economy appears to have held up well against significant recent headwinds, and some private-sector observers go so far as to suggest that growth rates similar to those of the “Golden Decade” may be realized again.

Despite the earthquake and subsequent tsunami in February, job losses and the closing of numerous small businesses last year because of the global financial crisis, Chile was the top destination for foreign direct investment in Latin America during the first quarter of 2010. During the recent World Conference for Trade and Development, the United Nations reported that Chile, with $5.7 billion in foreign direct investment, had outpaced Brazil ($5.6 billion) and Mexico ($4.3 billion) among favorite locations for investors in the first quarter.

What’s more, the Santiago Chamber of Commerce forecasts that Chile’s foreign capital flow this year could reach $15 billion to $20 billion. This is reflected in the dizzying pace in the service sector, communications, mining and retail sales resulting from higher spending on public and private reconstruction initiatives, and meaningful expansion in internal demand, according to a press note from the country’s Central Bank. (continue reading… )

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