Chile: Positive business outlook for the upcoming 4 years after last Sunday’s election.
The Chilean stock exchange celebrated after the election of Piñera as Chile’s next president and touched record highs. It can be said that the market’s favorite candidate won the elections and the stock market reacted with a daily rise that was not seen in 9 years.
On a single day, all the losses of the previous month, that the Santiago Stock Exchange had seen after the results of the first electoral round, were reversed. Some panic had spread in the market before the eventual arrival of Guillier, since after the first election round Sebastián Piñera and Alejandro Guillier ended up in a technical tie.
The current Chilean Finance Minister recognized that the investment community had a preference for the center- right candidate. The market liked the outcome and the stock exchange closed with an appraisal of 6.9%.
It is expected that the business activity and confidence will increase and that the level of local and foreign investment will pick up as well.
The confidence levels should be aligned to the better external environment in a more accelerated way in a center-right government, also due to the introduction of several pro-investment measures. The economic recovery will continue in the coming quarters, in view of a favorable external environment and an impulse on the performance of private spending (consumption and investment).
These expectations will definitely generate opportunities for foreign investors and for foreign companies that want to introduce their products and/or services to the Chilean market.
If you would like to learn more about opportunities for your company on the Chilean market, please feel free to contact us.