Chile has had a strong economy for the past ten years.

Copper exports had been a

strong driver of the Chilean economy. This has been due to increased demand for
copper, because of increased industrialization in countries like China and India. But
recently, the growth in China has reduced leading to a future outlook of reduced
copper demand. This has strained the economy, leading to the search of a new market.
The Chilean government has taken effective measures to promote growth. They have
eased the monetary policy. The Central bank of Chile has reduced the interest rates to
increase lending, but still only mortgage credit is showing growth. The interest rate
reductions have caused the peso to depreciate.
According to a IMF report, the Chilean economy is expected to grow by 3.2 percent
in 2014 and then grow to its full potential by 2016 due to the steps taken by the
Chilean government and global economy recovery. Despite possible decline in copper
prices in the future, if net exports continue to grow, the Chilean economy is bound to
grow further.
According the CIA handbook, the GDP has steadily grown by 4%. Among the
sectors contributing to the GDP, the services sector account for almost 61%. The
remainder is contributed by industry and agriculture.
The main trade partners of Chile are China and United States. Chile is on
of the member nations of the Trans -Pacific-Partnership trade agreement.
This promotes free trade among the member nations eliminating barriers
and imposed tariffs on goods and other services.
The growth of the Chilean economy has caused an increase in the living standards of
the Chilean people when compared to their neighbors. It was the first South American
country to join OECD. Other than the basic products, electronic goods are the most
popular product among the Chilean population. With a continued focus in
infrastructure spending, the telecommunications market in Chile is booming. In 2013,
Chile contributed upto 42% of smartphone sales in South America. With more and
more people going online, online shopping has become increasingly preferred in
Chile.
OECD (Organization for Economic Co-operation and Development) recently posted a
survey where Chile was rated as the country with the largest income inequality. Chile
had the largest gap between the income of the richest 10% and the poorest 10% of the
population. This shows that there is a market for high-end luxury goods as well as
those targeted at the low-income group.
Recently a study by A.C.Nielsen suggests that 42% of Chileans purchase a product
based on its price and 68% of Chileans possess at least one credit card. Other factors
influencing purchasing decisions were quality, durability, technology, customer
support and availability of service. Even after the recent global meltdown, the housing
market is still growing at a continuous rate.

Analyzing the consumer spending in Chile shows that it has increased by four folds in
the past four years. It reached its highest point during Dec 2013.Even though there is
a sharp fall after that; a significant increase in the next quarter supports the growing
trend in consumer spending. This trend indicates increased consumer confidence in
the economy. Also this allows them to invest more in health and education, which
makes the Chilean market attractive for new products.