Chile: What makes the difference?

Chile: What makes the difference?
Hernán Cheyre V.
Executive Vicepresident ‐ CORFO
Presentation in Chile Day 2011
y
Hamburg, October 18, 2011
Chile: What makes the difference?
Oct. 18, 2011
Chile in the
Context of
the World
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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Chile: What makes the difference? Chile in the context of the World:
Small Economy with high potential of growth
Oct. 18, 2011
GDP – 2010 (US$ bn)
ƒ
GDP PPP – 2010 (US$)
ƒ
14.658
47.284
45.736
39.057
12.193
34.920
33.805
32.773
26.966
5.459
5.878
15.854
14.430
15.002
1.039
1.538 1.574
11.239
9.566
9.330
7.519
2.090 2.247
3.339
Source: International Monetary Fund, World Economic Outlook Database, April 2011
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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Estados Unidos
Euro Area
Japón
China
Inglaterra
Brasil
Canadá
India
México
Argentina
Colombia
Hong Kong
Chile
Perú
Nueva Zelandia
Estados Unidos
Euro Area
China
Japón
Inglaterra
Brasil
Canadá
India
México
Argentina
Colombia
Hong Kong
Chile
Perú
Nueva Zelandia
140 153 203 225 286 370
Chile: What makes the difference?
Oct. 18, 2011
Main Goal of the Chilean Government:
A developed economy by the end of the decade
With a growth of 6% per year, Chile will reach a GDP per capita of US$ 23,000 in 2020,
similar to those already classified as developed countries.
PIB per capita 2010 GDP per capita 2010
(Miles de dólares, paridad de poder de compra)
(USD PPP Thousands)
48
39 40
35 35
33 34
27
22 22 23
16
14 14 14 15 15
7
9
29 29 29 30
25
18 19 19
12
10 11
Source: IMF
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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Chile: What makes the difference?
Oct. 18, 2011
How? Becoming a regional hub for entrepreneurship and innovation
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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Chile: What makes the difference?
Oct. 18, 2011
High potential for economic growth
i
th
Sound Fiscal Accounts
Good Institutional
Framework
Political
Stability
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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Chile: What makes the difference? Good Potential for Economic Growth
Oct. 18, 2011
ƒ
% Monthly increase of IMACEC
20
15,4
15
10
7,5
5,4
6,4 6,7
7,3
6,6
5,1
5
6,3 6,0
7,1 7,3
6,6
7,5
6,2
4,0
4,6
0
‐2,0
Ago-11
Jul-11
Jun-11
May-11
Abr-11
Mar-11
Feb-11
Ene-11
Dic-10
Nov-10
Oct-10
Sep-10
Ago-10
Jul-10
Jun-10
May-10
Abr-10
Mar-10
Feb-10
Ene-10
Dic-09
Nov-09
Oct-09
Sep-09
Ago-09
Jul-09
Jun-09
May-09
Abr-09
Mar-09
Feb-09
-10
Ene-09
-5
Source: Chilean Central Bank.
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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Chile: What makes the difference? GDP Growth – Short Term projections
Oct. 18, 2011
ƒ
% GDP
9,0
84
8,4
8,0
7,0
+/‐ 6,5
6,4
60
6,0
5,2
+/‐ 5,0
5,0
4,0
3,0
2,0
1,7
1,0
0,0
1Q 2010
Average 2Q, 3Q &
4Q 2010
2010
1H 2011
2011F
2012F
Source: Chilean Central Bank.
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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Chile: What makes the difference? Fiscal Budget
Oct. 18, 2011
ƒ
% of GDP – 2011F
4
2
2,0
1,2
0,8
0
‐0,7
0 7 ‐1,0
-2
‐1,7
‐3,0
-4
‐3,5 ‐3,5 ‐3,8 ‐3,8
‐4,0 ‐4,1
‐4,9
-6
‐5,5
5,9
9 ‐5
5,9
9 ‐6,1
‐5
61
-8
‐8,0
-10
‐8,5
‐9,6
Irland
Japan
US
United Kingdom
Greece
Spain
Portugal
France
Poland
Slovakia
Island
Italy
Holland
Czech Republic
Austria
Belgium
Germany
Denmark
Finland
Sweden
Chile
Hungary
Luxembourg
‐10,3 ‐10,3
-12
Source: FMI y DIPRES – Chile.
* Chile: Central Government
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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Chile: What makes the difference? Gross Public Debt
Oct. 18, 2011
ƒ
% of GDP – 2010
189
143
97
Bélgica
Noruega
96
Irlanda
Dinamarca
93
EEUU
Eslovaquia
93
Portugal
Suecia
83
Alemania
45
82
Francia
44
60
80
Hungría
41
55
Holanda
40
48
España
39
Rep.Checa
72
63
80
Reino Unido
119
18
Japón
Grecia
Italia
Austria
Polonia
Finlandia
Luxemburgo
Chile
9
Source: Eurostat, CEIC y Dirección de Presupuesto – Chile.
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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Chile: What makes the difference? Net Public Debt
Oct. 18, 2011
Central Government Net Debt as % of GDP – 2010
140
Chilean Public Net Debt 1H 2011: ‐8,4%
142,0
117,5
120
99,6
100
80
64,8
74,6
69,4 73,4
81 5
79,1 81,5
53,8
48,8 49,8
60
40
21,4
20
0,9
0
Italy
Belgium
Portugal
France
Hungary
Ireland
United Kingdom
US
Germany
Austria
Spain
Dinmark
Chile
Sweden
-40
Holland
‐7,5
Poland
‐14,6
27,5
4,8
Czech Republic
-20
69,4
Greece
160
Japan
ƒ
Source: FMI y DIPRES – Chile.
* Chile: Central Government
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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Chile: What makes the difference? Chilean Sovereign Funds
Oct. 18, 2011
ƒ
Billions US$
25
22 7
22,7
20
16,5
18,1
14,7
15
10
5
0
2008
2009
2010
Aug-11
Source: DIPRES – Chile.
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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Chile: What makes the difference?
Oct. 18, 2011
Why
Invest in
Chile?
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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Chile: What makes the difference?
Oct. 18, 2011
Chile, Hub to Latin America
Why Invest in Chile?
10 Reasons to Invest in Chile
Dynamic Economy
Highly
Competitive
High Transparency
Institutional &
Financial Strength &
Low Country Risk
Gl b ll Integrated
Globally
I t
t d
Highly Skilled &
Competitive
Human Resources
Great Business
Environment &
Economic Freedom
Tax Friendly
Economy
Outstanding Quality of
Life
Transport Infrastructure
& Modern Connectivity
Integrated to the World
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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Chile: What makes the difference?
Oct. 18, 2011
High Competitiveness
Why Invest in Chile?
Country
Ranking of Competitiveness
2011‐2012
31st
place among 142 countries around the world
Chile
has the most
Chile has the most competitive economy in Latin America
Nº 1 LATAM
Ranking 2011‐2012
Switzerland
1
Singapore
2
Sweden
3
United States
5
Germany
6
UK
10
China
26
Chile
31
Estonia
33
Spain
36
Czech Republic
38
Thailand
39
Poland
41
Italy
43
Portugal
45
Panama
49
Brazill
53
India
56
Source: World Economic Forum (www.weforum.org) Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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Chile: What makes the difference?
Oct. 18, 2011
Free Trade Agreements a market of 4.2 billion
Why Invest in Chile?
Chile has 21 agreements with 58 countries
Bolivia
Cuba
Ecuador
MERCOSUR
Vene ela
Venezuela
India
P‐4 European Union
A stralia
Australia
Canada
Central America
China
Colombia
Korea
EFTA
U.S.A.
Japan
Mexico
Panama
Peru
Turkey
Represents 63% of world population (2010)
P4: Chile, New Zealand, Singapore, Brunei
EFTA: Iceland, Norway, Switzerland, Liechtenstein
Agreements Signed
Agreements Negotiated
Agreements under Negotiation
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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Chile: What makes the difference?
High Transparency
Why Invest in Chile?
Oct. 18, 2011
Index on Perceived Corruption
(178 countries analyzed)
Denmark
1
Singapore
1
4
Sweden
Germany
15
United Kingdom
20
Chile
21
USA
22
Uruguay
24
France
25
Poland
41
Costa Rica
41
Brazil
69
Peru
78
Colombia
78
Argentina
105
Nº 1
LATAM
Source: Transparency International (www.transparency.org) October 2010.
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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Chile: What makes the difference?
Oct. 18, 2011
Best Business Environment & High Economic Freedom
Why Invest in Chile?
Economic Freedom Index
(179 Economies)
Business Environment Index
(82 Economies)
Singapore
1
2
Swiss
Finland
3
Canada
5
New Zealand
14
Chile
Colombia
11
19
23
Germany
U
Uruguay
33
36
Mexico
41
Portugal
45
Brazil
51
Source: Economist Intelligence Unit, April 2010 (www.eiu.com)
Japan
Spain
40
Peru
6
United Kingdom
35
Brazil
3
10
19
Mexico
Australia
Chile
17
F
France
2
8
15
Ireland
Singapore
USA
13
Germany
1
Swiss
8
USA
Hong Kong
Nº 1
LATAM
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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113
Source: Heritage Foundation, March 2010 (www.heritage.org)
Nº 1
LATAM
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Chile: What makes the difference?
Oct. 18, 2011
InvestChile: Support for
Support for innovative initiatives initiatives
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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Chile: What makes the difference?
Oct. 18, 2011
InvestChile Attraction & Promotion
InvestChile: Support for innovative initiatives InvestChile by CORFO aims to provide qualified services in order to support and facilitate the installation in Chile for foreign investment projects. In addition, InvestChile aims to strengthen the growth capacities of the Chilean economy and diversify both the production and export base, through promotion and attraction of high impact investment. Offers services and incentives to foreign investors in order to facilitate the evaluation, g
,
installation and materialization of investment in Chile.
InvestChile works in partnership with the 56 offices that the Chilean Export Promotion Bureau (Prochile) has around the world.
New York City USA/Spain/Germany/
Nordic Countries
National Network
National Network
15 branches throughout the country
I t
International Representations
ti
lR
t ti
*Upcoming openings of Representations: Brazil and France Institutional Agreement with ProChile
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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Chile: What makes the difference?
Oct. 18, 2011
Investment Opportunities
InvestChile: Support for innovative initiatives Suppliers for the Mining Industry
Chile is a world
Chile
is a world‐class
class player.
Biotechnology
Over 200 institutions dedicated to biotechnology development.
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
Food Industry
Chile is one of the most competitive food ecosystems with.
Manufacturing & Assembly
Export‐oriented fabrication & integration of parts & components
of parts & components.
OffShoring
In Chile there are over 400 companies in the industry that export more than U.S. $1 billion per year.
Ancillary Industry Non Conventional Renewable Energies
Chile has an interesting g
potential in primary renewable energy.
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Chile: What makes the difference?
Oct. 18, 2011
1st International Offshoring Forum
14‐17th November 2011
www.investchile.com/offshoringforum
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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Chile: What makes the difference?
Why invest in Chile?
Oct. 18, 2011
Chile: Always Committed
Gobierno de Chile | Corporación de Fomento de la Producción – CORFO
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Chile: What makes the difference?
Hernán Cheyre V.
Executive Vicepresident ‐ CORFO
Presentation in Chile Day 2011
y
Hamburg, October 18, 2011