Argentina and Chile see changes in business ranking
The Economist Intelligence Unit (EIU) recently released its ranking of the best places in the world to do business, bringing about notable changes for Argentina and Chile. Argentina has entered a new category, while Chile has experienced a significant drop in its ranking.
The EIU’s global list evaluates countries based on factors such as macroeconomic stability, political situation, market opportunities, trade restrictions, and tax systems to determine the most favorable conditions for large investors to move their capital.
According to senior economist Nicolás Saldías, Singapore, Denmark, and the United States are predicted to have the best environment for attracting capital in the near future, followed by Germany and Switzerland. Canada, Sweden, New Zealand, Hong Kong, and Finland complete the top 10.
Singapore, in particular, continues to be a top destination for investors due to its trade openness, technological advancements, political stability, and low corruption levels. The country has heavily promoted foreign direct investment by reducing taxes, eliminating trade barriers, and investing in infrastructure.
Argentina, on the other hand, is undergoing a transformation under the new government led by Javier Milei. The country has been identified as one of the top places likely to favor private investments in the next five years, alongside Greece, India, Angola, and Qatar. The government is expected to undo interventionist policies, liberalize trade, lift currency controls, and stimulate foreign investment.
In contrast, Chile, although still the highest-ranked Latin American country, has experienced an eight-place drop on the global list. Policies implemented by the current government, such as restrictions on foreign investors in the mining sector and labor laws seen as more restrictive, have contributed to this decline. Additionally, polarization, increasing crime rates, and security challenges have impacted the country’s investment prospects.
Despite these challenges, Chile continues to excel in areas such as taxes, competition, financial market development, and infrastructure. The country also benefits from a clear investment regime and a diverse, younger workforce due to high levels of foreign migration.
Overall, while Argentina and Chile face different challenges in the business environment, both countries are working towards creating more favorable conditions for investors in the coming years.