Since the early 1990s, Chile has had a politically stable situation and experienced steady economic growth. At the same time, it is important to be aware of the demonstrations and disruptions that has occurred lately. To make an expansion to the Chilean market should therefore be considered with. As one of the most open economies in South America, combined with its transparent political leadership, it is highly competitive compared to other Latin American countries. Chile has free-trade agreements with both the EU and the US and is one of two South American members of the Organisation for Economic Co‑operation and Development (OECD).

Opportunities for Swedish companies

As a well-developed market, Chile offers many business and investment opportunities for Swedish companies. The most important industries include mining, forestry, agriculture and viticulture, and in these sectors Swedish technologies and solutions can really make a difference. The Swedish expertise about extraction and manufacturing processes can increase productivity and decrease costs. Chile has also achieved one of the highest positions in the “Easiness of doing business” rank compared to countries in Latin America.

In recent years, there has been an increased interest among Chilean companies for digitalisation and technology solutions, related to areas such as healthcare, e-health and transport solutions. The consumption in Chile has also gone up, mainly due to a boost in purchasing power, but also thanks to advantageous credit loan opportunities. In consequence, the retail sector has also experienced substantial growth.

Possible challenges in chile

With the economy growing, Chile offers a lot of chances to Swedish businesses for expansion and market entry, but there are some aspects that can be challenging. The level of English throughout the country is low, the tax system has a high level of bureaucracy compared to the EU and finding the right local partners to set up your business can be challenging. In addition, Swedish companies may perceive a gap between how information is communicated and transferred into actions by local stakeholders.

How we can help you expand

Business Sweden offers strategic advice and can help you set up a reliable local network. We have been present in Chile since 2008, our local office also covers Argentina, Peru, Uruguay and Paraguay.