As we look at the year ahead, FSG expects Chile’s economy to grow 2.7% in 2018, pushed by stronger copper export revenues, higher private consumption growth, and a long-awaited recovery in gross domestic investment.
However, Chile’s economy will remain vulnerable to external factors, namely the supply-and-demand mechanics that determine copper prices. MNCs should understand Chile’s new political reality, which is not solely characterized by technocratic governance; the emergence of Frente Amplio as an influential veto player on the left will complicate the Piñera government’s ability to pursue a traditional pro-business agenda.
FSG’s Southern Cone Analyst, Alex Schober, created a brief video with insight into the three big trends to watch, and actions to consider:
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