Chile’s economy has broken its growth record for a second month in a row, in a sign that one of Latin America’s most-developed countries is witnessing a major bounce back from the turmoil of the global pandemic.
According to the country’s Central Bank, Chile’s economy saw 20.1% more growth in June 2021 than in June the previous year — the highest rate of growth since 1986, when current ‘Imacec’ record keeping methods began.
That is significantly higher than the 18% growth previously predicted for June, and 2.1% higher than the year-on-year monthly record set in May, according to local media outlet Emol.
“To whom should this growth be credited? To the workers, the SMEs, to the entrepreneurs, to all Chileans,” said Chilean President Sebastian Piñera in welcoming the news, according to El Economista.
Table of Contents
Chile’s economy resurges after pandemic turmoil
While Chile’s economy has been one of the fastest growing in Latin America in recent decades, it was also one of the hardest hit in 2020, after the coronavirus pandemic swept the globe in the early months of the year.
Chile has long been one of the most highly-developed economies in Latin America, rated as the 19th freest economy in the world and 2nd in the region by the Heritage Foundation in 2021.
According to the latest Imacec assessment, every growth marker saw improvement in June, including a 21.8% growth in the construction industry, an 18.8% growth in manufacturing, and a 45.4% rise in commerce.
While Chile is famed for its extractive industries, including production of copper, as well as gems and precious metals, it is also a major commercial hub in the region, known as a global beacon of free trade and maintaining one of the most extensive portfolios of free trade agreements in the region.
Vaccine rollout bolsters Chile’s economy
Chile has overseen one of the fastest vaccination rollouts in the world, with more than 78% of the target population fully vaccinated by late July.
However, the success of the vaccination programme does appear to correlate with Chile’s economy showing strong recovery signs, with consecutive months of economic recovery now recorded.
The news will be welcomed by investors, with all sectors of Chile’s economy reactivating and showing positive signs for the future.
Biz Latin Hub can help you doing business in Chile
At Biz Latin Hub, our multilingual team of corporate support experts is available to assist you in doing business in Chile’s economy, or any of the other 18 markets in Latin America where we are present. With our full suite of back office solutions, including company formation, accounting, legal, and recruitment, we can be your single point of contact for entering and operating in Latin America.
Contact us today to discuss how we can help you achieve your commercial goals.
Or read about our team and expert authors.
The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.