Invest in businesses in Chile According to the Global Competitiveness Rankings compiled annually by the World Economic Forum (WEF), it is less attractive than it was years ago.
With the result of the preliminary data of the ranking 2015-2016, Chile took the 35th place position in a list that brings together 140 economies and has Switzerland, Singapore and the United States at the top.
Decline in corporate competitiveness in Chile
That Global ranking of competitiveness analyzes countries based on three indices: Essentials, Efficiency Enhancers, and Maturity and Innovation. Each of them has subdivisions (12 in total) that help to understand the scenario of the countries in more detail.
In the case of Chile nine of the 12 pillars suffered falls compared to the previous study which ranked the country 36th in essentials, 31st in efficiency enhancers and 50th in sophistication and innovation.
The biggest drop occurs from the indicator onwards labor market efficiency, which dropped from 50th to 63rd place. This area, along with women’s labor force participation, is also considered a setback when analyzing hiring and firing practices.
The ranking also deals with the the most problematic factors for those who want to invest in business in Chile. There are labor regulations, an underskilled workforce, inefficient government bureaucracy, and low rates of innovation and regulation.
competitiveness with neighboring countries
Although the country has suffered from a steady decline in its competitiveness index, causing it to drop from 27th place in 2006-2007 to 35th place in 2015-2016, Chile still holds a place privileged place in Latin America.
Prominent countries in the region such as Mexico, Colombia, Peru and Brazil, appear much lower in the last decade’s results. The next, Mexico, is ranked 57th today.
Analyzing the results for Chile, one finds that the numbers have been steadily declining, but only slightly. Compared to Brazil, for example, the variation was small. Between last year and this year, the Brazilians have fallen from 57th to 75th place.