With strong financial institutions and a stable political climate, Chile has been found to be the best country for doing business in Latin America, according to Forbes.
The American business magazine has ranked Chile 33 out of 153 countries on its Index of Best Countries for Business.
Although copper exports account for 20% of Chile’s revenue, the Andean country carries the highest sovereign bond rating in all of South America.
Besides having lax immigration policies and a liberalized economy, Chile has 22 trade agreements covering 60 countries including agreements with the EU, Mercosur, China, India, South Korea, and Mexico.
Another good country for doing business in the region is Costa Rica, which ranked 45 on the index. The country has attracted one of the highest levels of foreign direct investment per capita in Latin America.
“Foreign investors remain attracted by the country’s political stability and relatively high education levels, as well as the incentives offered in the free-trade zones,” says the report.
The countries that performed well are small compared to Mexico and Brazil, which ranked 57 and 74 respectively.
Uruguay did better than Mexico when it comes to business, ranking 54th. Uruguay’s economy is widely connected with Argentina and Brazil, with the ongoing economic recovery in these two countries expected to boost Uruguay’s prospects, according to the analysis.
Despite being praised for its pro-business policies under the administration of Mauricio Macri, Argentina ranked low on the index at 81. El Salvador, Dominican Republic and Guatemala ranked 92, 93, and 94 respectively.