The deceleration in late 2013 seems to be caused by weak performance of the manufacturing and wholesale sectors, while mining activity remained strong. The slowdown in the manufacturing sector appears to be the result of a weaker investment growth, due to some uncertainty about the economic policies of the new government and the fact that some energy and mining projects are affected by delays as it has become more difficult to obtain environmental permits. Chile has seen booming exports, particularly in the mining sector of the economy. But unlike other nations with significant exports of commodities, Chile has successfully diversified its economy away from over-dependence on those exports. For 2014, a slowdown in domestic demand, in particular private consumption, combined with a weaker expansion of public consumption will slow grow further.
Opportunities for UK businesses
The Chilean economy continues to grow, and its robust export-oriented industries supply markets far beyond Chile’s borders. The Chilean business climate presents huge opportunities for UK businesses that sell equipment, technology, and services. There is also demand for training and niche accreditation in the areas of insurance, banking, IT, hospitality and catering.
Visit Export Britain for more information and to find support in this market.