Chile Property Investment News

New report optimistic about Chile's economic growth

Chile is tipped to be the first Latin American country to reach a gross domestic product (GDP) in excess of $10,000 per capita, according to a recent report from Columbia University’s Economist Intelligence Unit. The report also predicts that Chile will receive the third highest proportion of foreign direct investment of any Latin American country, after Brazil and Mexico.

By 2008, Chile’s GDP per capita will have risen to $10,600, from a predicted $9,520 this year, according to the ‘World Investment Prospects to 2011’ report. Chile’s average annual economic growth overall is predicted to be 5.1% between now and 2011.

In addition to its growing tourist industry and foreign investment, Chile is currently seeing growth in its export levels. It was reported earlier this week that the country will reach another milestone this year as its frozen fruit and vegetable exports are predicted to reach the $200 million mark by the end of 2007.

This strong economic growth is likely to drive up demand for property in the country, as will the news that the land earmarked for residential development in Chile’s capital city of Santiago is expected to run out by 2009. The news came in a separate study conducted by the Chilean Chamber of Construction. According to the research, Santiago has 2,000 hectares which has been set aside for building residential property, but if the current rate of construction continues, all of this land will have been developed within the next two years.

Santiago has been receiving much of the foreign investment pouring into Chile over the last few years, and large companies including Microsoft, JP Morgan, Coca-Cola and Ford have all chosen to locate their regional bases there. Investors are traditionally attracted by the country’s reputation as an uncorrupt nation, unlike many of the South American countries.