Chile Economy
Analysis of Macroeconomics in Chile
&
Suggestion on Investment
Date: 12.01.2011
Table of Contents
Executive summary 4
Chile background 5
About Chile 6
Location and Size 6
Population 6
Language
7
Weather and Climate 7
Chile – a seismic country 8
The Earthquake in 2010 9
Overview of Chile Economics 9
GDP 10
Chile Economic Structure: The Road Ahead 11
Chile GDP Forecast 12
Labor 12
Poverty and Wealth 12
Chile Unemployment Forecast 13
Chile working conditions 14
Inflation rate 14
Chile Inflation Rate Forecast 15
Chile Current Account Balance 15
Chile Current Account Balance Forecast 15
Currency and exchange rates 16
Products. Import and Export 18
International Trade 19
Chile Industry Sectors 21
Doing business in Chile 22
Sustained progress 22
10 reasons to do business in Chile 23
1. Stable economy 23
2. World class connectivity 24
3. Skilled Human Resources 24
4. Competitive business costs 25
5. Exceptional quality of life 25
6. Access to world markets 25
7. Government support 25
8. Low corporate tax 26
9. Freedom of growth 27
10. Solid institutions 27
Chile, an open economy 27
Labor laws in Chile 28
Sustainability 29
Connectivity 29
Chile Infrastructure, power, and communications 29
Telecommunications 32
Economy 33
Energy 34
Environment 34
The Travel & Tourism Industry in Chile 35
Active tourism 36
Chile’s competitiveness in tourism 37
Starwood Hotels and Resorts. Company overview 42
Competition 45
Environmental Matters 45
Starwood’s Expansion in Chile 46
P.E.S.T.L.E Analysis 48
Foreign direct investment in Chile 56
SWOT analysis 58
15 year Chile macroeconomic forecast 59
Conclusion 60
References 62
APPENDICIES…………………………………………………………………………………………………………………………………….72
Executive summary
The objective of this project is to analyze and evaluate the current macroeconomics environment of Chile and formulate a recommendation whether to invest or not in the development of a major
&
Suggestion on Investment
Date: 12.01.2011
Table of Contents
Executive summary 4
Chile background 5
About Chile 6
Location and Size 6
Population 6
Language
7
Weather and Climate 7
Chile – a seismic country 8
The Earthquake in 2010 9
Overview of Chile Economics 9
GDP 10
Chile Economic Structure: The Road Ahead 11
Chile GDP Forecast 12
Labor 12
Poverty and Wealth 12
Chile Unemployment Forecast 13
Chile working conditions 14
Inflation rate 14
Chile Inflation Rate Forecast 15
Chile Current Account Balance 15
Chile Current Account Balance Forecast 15
Currency and exchange rates 16
Products. Import and Export 18
International Trade 19
Chile Industry Sectors 21
Doing business in Chile 22
Sustained progress 22
10 reasons to do business in Chile 23
1. Stable economy 23
2. World class connectivity 24
3. Skilled Human Resources 24
4. Competitive business costs 25
5. Exceptional quality of life 25
6. Access to world markets 25
7. Government support 25
8. Low corporate tax 26
9. Freedom of growth 27
10. Solid institutions 27
Chile, an open economy 27
Labor laws in Chile 28
Sustainability 29
Connectivity 29
Chile Infrastructure, power, and communications 29
Telecommunications 32
Economy 33
Energy 34
Environment 34
The Travel & Tourism Industry in Chile 35
Active tourism 36
Chile’s competitiveness in tourism 37
Starwood Hotels and Resorts. Company overview 42
Competition 45
Environmental Matters 45
Starwood’s Expansion in Chile 46
P.E.S.T.L.E Analysis 48
Foreign direct investment in Chile 56
SWOT analysis 58
15 year Chile macroeconomic forecast 59
Conclusion 60
References 62
APPENDICIES…………………………………………………………………………………………………………………………………….72
Executive summary
The objective of this project is to analyze and evaluate the current macroeconomics environment of Chile and formulate a recommendation whether to invest or not in the development of a major