Lucintel PESTLE Analysis of Chile 2014: Chilean Presidential Election 2014 will pave the Way for Economic Reforms

Michelle Bachelet’s return to the Chilean presidency in 2014 will pave the way for a highly ambitious reform agenda, which seeks to raise taxes and introduce higher quality free education in the country. But due to an insufficient parliamentary majority, the centre-left coalition will need to compromise on reforms.

Lucintel, a leading global management consulting and market research firm, has conducted a detailed analysis of this economy and presents its findings in “PESTLE Analysis of Chile 2014.” The study indicates that Chile is likely to face some challenges in its quest for achieving growth and competitive edge in the economy. High dependence on copper export is one of the major challenges for the country. The report also highlights the major drivers of the economy.

Increase in external as well as domestic demand is expected to boost high economic growth of Chile. Since the country is the world’s third largest in copper reserves, increase in copper prices will also have positive impact on the economic growth. Chilean economy is likely to grow to $283.7 billion at the current price by 2019, with a CAGR of 5.5% from 2014 to 2019.  Economic recovery across the globe is likely to improve producer confidence that in turn, is likely to boost demand of copper. Lucintel expects a rebound in the economy by 2014, especially after a phase of recession in the European countries.

The service sector is contributing to 69% of the GDP in Chile where business services are playing crucial role. High growth in business services such as administrative services and professional services is backed by the highly skilled workforce. Mining is one of the leading industries in Chile which contributes 14.2% to GDP. Huge copper reserves have led to the growth of the mining industry.

Chile is known for its mining industry and is ranked third in the world for copper output. Huge copper reserves (28% of global reserves) are making mining support services industry an emerging industry of Chile. It is expected that Chile will attract more than $50,000 million investment by 2017 in this industry. Lucintel highlights the key challenges faced by Chile. High dependence on exports of copper is one of the economic challenges faced by Chile. Chile is also facing the technological challenge of low R&D expenditure. On the social front, Chile may face higher dependency ratio which is likely to increase to 16.6% in 2019 from 13.9% in 2013.

This report includes in-depth analysis of the macro economy of Chile, political scenario, economic and business risk as well as, social and technological analysis. This report provides the knowledge on leading and the emerging industries in the country.

For a detailed table of contents and pricing information on these timely, insightful reports, contact Lucintel at +1-972-636-5056 or via email at helpdesk@lucintel.com. Lucintel provides cutting-edge decision support services that facilitate critical decisions with greater speed, insight, and cost efficiency. To learn more, visit www.lucintel.com.

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