Chile is a liberal, open market economy with strong macroeconomic stability, characterised by a high level of foreign trade and a reputation for strong financial institutions. Its sound fiscal policies have enabled it to have one of the strongest sovereign bond ratings in South America, currently rated A- (Fitch), A2 (Moody’s), and A (S&P). It has enjoyed strong GDP growth since the mid-1990s, maintains a tight rein on government spending and inflation, and sustains a relatively low tax burden compared to regional peers.
Chile’s growth in 2019 was limited to 1.1% following widespread social protests and resultant economic disruption towards the end of the year. This was followed by a contraction of 6% in 2020, mainly related to the effects of Covid-19. The economy rebounded with 12% growth in 2021, mostly driven by robust private consumption, high copper prices and a world-beating Covid vaccination programme. However, growth slowed to 2.4% in 2022 and just 0.2% in 2023, due to inflationary pressures, global uncertainty, and weakened private investment. In 2025, GDP is expected to grow by 2.0%–2.5%, driven by recovering exports and moderate domestic demand.
The Chilean economy is open; exports and imports are worth 65% of GDP, and Chile has signed more than 30 trade agreements with 70 countries, covering 88% of global GDP. However, some of the opportunities for further progress include diversifying its economy, ensuring energy availability, adapting to persistent drought conditions, promoting innovation, increasing productivity, and tackling inequality. Chile is actively seeking overseas partners for assistance in all these areas.
Chile has a long trading history with the United Kingdom, dating back to the late 19th century. It was one of the first countries to sign a new trade continuity agreement with the UK after it left the European Union, and there are many business opportunities in Chile for UK companies across a wide range of sectors. Studies have shown that there is significant “like mindedness” in business relationships between the two countries.
This Guide to Doing Business in Chile is designed to be an online resource that is simple to navigate and read. The information included is taken from publicly available information which has been carefully researched and presented, and is believed to be correct at the time of going to press. It should not be used as a basis for making business related decisions, wherein legal or other professional advice should always be sought first.
