Chile Country Risk Report - Business Monitor International - Industry Reports

Chile Country Risk Report

Chile Country Risk Report - Business Monitor International - Industry Reports
Chile Country Risk Report
Published Jul 23, 2015
55 pages — Published Jul 23, 2015
Price US$ 1,195.00  |  Buy this Report Now

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The centrist members of President Michelle Bachelet s ruling Nueva Mayoria coalition will stymie several of her proposed reforms in the coming months, taking advantage of the president s weak popular sup- port on the back of corruption scandals. Bachelet s recent cabinet re- shuffle, including the appointment of centrist finance minister Rodrigo Valdes, will be insufficient to appease her coalition partners, but it will bolster investor sentiment toward the country. ...Most notably, this saw Interior Minister Rodrigo Penailillo - Bachelet s close political ally from her leftist Partido Socialista de Chile (PS) party - as well as finance minister Alberto Arenas replaced by more cen- trist members of the ruling NM coalition. By removing cabinet members under investigation for corruption and replacing them with members from the centrist Partido Democrata Cristiano (PDC) � the minority party in Bachelet s coalition � we see the president as attempting to bolster her public approval rating and appease the PDC s long discontent over what it views to be its under-representation in the government. However, we believe efforts to reach out to the PDC will be to minimal success as the centrist party will take advantage of the president s weak position, increasingly pushing back against Bachelet s more left-leaning agenda. ...While the recent corruption allegations - Business Monitor International Ltd

...Chilean real GDP growth hit bottom in ----, and will accelerate modestly in ----. an improving net exports position, combined with the government s fiscal stimulus and tailwinds from lower oil prices, will support stronger economic activity, although headline growth will remain below the historical trend. ...This would bolster the peso, leading the unit to appreciate over the course of ----. By contrast, the risks to our Commodities team s copper price forecasts are weighted to the downside, as a crackdown by the Chinese government on using the metal as collateral for bank loans could generate a significant supply glut. Should copper take a major leg lower, the ClP would likely follow suit. ...

...Market-friendly policies and strong institutions have been the hallmark of the Chilean government in recent years, and we believe that the country will continue to set the benchmark for political stability in the region going forward. That said, there is a risk that the political landscape could frac- ture over the longer term if the leading parties fail to address long-term concerns about an economy reliant on copper export-led growth. ...That said, we note - Business Monitor International Ltd political outlook Moderated reforms Will ensure strong operating environment Will remain latin america � operational Risk Index, out of --- Source: BMI government expenditures as a percentage of GDP were com- parable under Bachelet s first term as president, and that of her successor Sebastian Pinera. Therefore, we do not expect Chile s government to drastically abandon its historical commitment to fiscal prudence (see Fiscal Deficit Will Narrow Beyond ---- , ...

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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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Business Monitor International - Industry Reports. "Chile Country Risk Report" Jul 23, 2015. Alacra Store. Oct 26, 2016. <>
Business Monitor International - Industry Reports. (2015). Chile Country Risk Report Jul 23, 2015. New York, NY: Alacra Store. Retrieved Oct 26, 2016 from <>
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