What Changes Will Piñera Election Win Bring on the Business Scene in Chile in 2018
What happens when a billionaire comes against a powerful senator? A conservative billionaire might bring new changes in the political climate that a seasoned politician cannot.
Have you been closely following the 2017 elections? Most likely you must not have missed the grand showdown between the conservative billionaire Sebastián Piñera and Senator Alejandro Guillier. Putting all doubts to rest, Piñera won with 54.6% of the votes in his favour, while 45.4% votes left to Guillier. It is indeed a massive move for Chile. Because shifting its politics to the right, just like other Latin American nations are recently doing. Piñera Election Win is sure to bring some changes in the business scene in Chile too.
It is necessary to note the economic policies of the ruling political party of a country. It has a substantial influence on how a business fares in that country. As different parties in Latin America have different economic policies, this is very important for people in the business sector to know and analyse. The economic policies of a political party are mainly of interest to foreign businesspeople. They are looking to open or run companies in Chile or other areas of Latin America.
What Expectations Can You Have From Piñera?
Before we go on to the expectations, let us have a look at what type of economy Piñera inherited from Bachelet.
The backbone of Chile’s economy has been copper. Mining, selling and production of copper articles is the most significant industry there. However, Chile had to face back-to-back losses recently due to low prices and lower demand for copper. This double whammy brought about an economic slowdown.
The President, Michelle Bachelet, could not bring it back on track during her administration. The policies of her party weren’t designed to cover losses. It leads to unrest among the Chileans, as the economy slowly went south.
Piñera then stepped in and proposed cutting down taxes on businesses to allow them to grow again and bring more funds into the economy. He made several more significant decisions. He allotted USD 14 billion to be spent over four years on investments in infrastructure to kickstart growth.
What Effect Has Piñera Brought About on Business in Chile?
Piñera’s economic plans resonated well with people in the business sector. Though many people opposed him for not emphasising on socialist ideals that Guillier held, others were ecstatic about Piñera coming to power and taking charge of the Chilean economy. Soon after his win, the value of the Chilean peso and Chile’s IPSA stock index increased. Investors began to invest their money in shares more confidently, now that a firm economic policy was in place. Indeed, Piñera’s radical plans have received the slowing Chilean economy tremendously.
What will happen in the future is something only time can tell. But the current scenario is looking quite useful for those who want to do business in Chile. If all goes as promised and planned by Piñera, more opportunities will open in Chile, bringing in more money, and stabilising the economy.
Those who voted for a conservative billionaire and politician like Piñera are glad because they could bring about a good change in the political and economic climate of Chile. Switching of parties keeps everyone aware and all keep trying to get a better government. We should keenly follow the Chilean economy to see whether the economic growth promised by Piñera comes through successfully or not.
If you are looking to invest during the expected economic growth or interested in doing business in Chile, contact our team of experts, who can guide you through the process. Contact us now for information on how to start and grow your business in Chile.