With online shopping much more present in the daily lives of Chileans, the country shows itself to be a valuable market in the region. Read more now!
With the arrival of the new coronavirus, the economy went into recession and millions of jobs ceased to exist in Latin America, including in Chile. However, the pandemic accelerated the processes of digital transformation and e-commerce, favored the advancement of digitalization, and increased online consumption worldwide.
With online shopping much more present in the daily lives of Chileans and vaccination levels rising in all of Latam, the country shows itself to be a valuable market in the region, with major opportunities for foreign merchants.
Want to know a little more about Chile’s economy and how to succeed in this territory? Keep reading!
What are Chile’s biggest economic indicators?
Chile’s economic indicators are official statistics that quantitatively and directly reveal the reality of Chilean society. These data are relevant because they interfere in business planning and can help international retailers to create new strategies for the trade of consumer goods. Check out some of the main indicators:
In 2021, Chile’s GDP grew by about 12% so that this high surpassed the figures for 3 decades. The opening of the economy and the increase in demands boosted sales, as families and companies adapted to the new health context required by the pandemic.
However, the war in Ukraine, the new variants of Covid-19 and the slowdown in China threaten to slow down Chile’s GDP growth. Interest rates and inflation are high and there are doubts about the content of the new constitution. Political changes and social unrest are some of the causes of the drop in this indicator, which is expected to increase in the future.
Despite the scenario described above, in early 2022, Chile’s economy returned to growth and was boosted by vaccination. The government created a tax incentive and withdrawals from pension funds impacted consumption. Estimates indicate that GDP will grow by up to 3% in the first month of 2023.
The second wave of the pandemic in 2021 led the Chilean government to impose quarantines and caused the closure of thousands of businesses located in its territory. The unemployment rate has increased and the poverty rate has increased by almost 34%. The numbers had started to fall before the conflict in Ukraine started.
As a result of this war, economic activity contracted in February and the unemployment rate and social inequalities increased significantly. Copper production fell and businessmen had their confidence shaken. Consequently, the government decided to expand a fund with the aim of stabilizing fuel prices.
Chile has already adopted the concept of sustainability and released its climate commitment called the Nationally Determined Contribution (NDC). This step demonstrates great progress since the Paris Agreement that took place in 2015. The movement intensified with the arrival of the global pandemic, the imminent economic and social crises.
The government’s intention with the creation of an environmental recovery plan for Chile is to prove that the country has ambitious goals that will enable the nation’s growth. As a result, its international leadership to carry out the United Nations climate negotiations was consolidated.
What are the challenges of the Chilean market?
One of the main challenges facing Chile is rising inflation at an accelerated pace as a result of the war in Ukraine. While the country has grown and vaccines have spurred economic reopening, tax breaks and early withdrawals are waning. Other challenging conditions refer to the decline of stimulus policies.
On the other hand, the increase in domestic demand increased the current account deficit. Consumer spending has slowed by about 16% compared to last year. Therefore, sales that grew in January were below the peak announced in 2021. Political uncertainty is another issue that can bring difficulties to Chileans.
How to make your company successful in Chile?
Foreign companies can succeed in Chile through cross-border e-commerce. To sell to consumers in Chile, it is enough to create a suitable website, invest in digital marketing — provided you invest in innovative technological solutions and properly localize the whole shopping experience, including payments.
A local payments solution is the best option to improve your customers’ experience, increase loyalty rates and gain credibility in the international market. With it you can access the entire consumer base of Chile, offering local payment methods, from domestic-only credit cards to cash-based transfers.
Thus, e-commerce is an excellent opportunity, as the international economy promises to have great growth between 2022 and 2023. With local payment processing, international entrepreneurs overcome the insecurity of their audience.
How does BoaCompra’s Payment Processing help you sell in Chile?
Online sales are growing rapidly and, with so many options available, consumers seek e-commerce stores that offer what they require. For Latin American clients, this includes payments in local payment options and local currencies.
Besides, a local payments partner such as BoaCompra by PagSeguro has the expertise you need to successfully sell to Latin America, understanding local practices, habits, and the fast changes in each country’s payment landscape.
With BoaCompra’s Payment Processing, you can better sell to Chile and other 16 Latin American countries and offer over 140 local payment methods to your Latam consumers.
With over 17 years of experience, BoaCompra is part of PagBank PagSeguro, which ensures our financial and technical resilience. By using our Payment Processing solution, merchants also have access to our 24/7 local customer support for their clients, expert Smart Fraud Prevention, dedicated account management, and more.
Reduction of cyber crimes
Smart Fraud Prevention is a solution that has essential functionality to reduce losses resulting from cyber crimes. Through it, the customer makes the purchase that is passed on by the merchant to BoaCompra, which is responsible for sending the transaction to PagSeguro and PagBank. Then the anti-fraud system kicks in and then returns the operation if everything is ok.
See how full of potential the Economy in Chile is for 2022? With the help of BoaCompra, you will be able to leverage your sales and ensure that your company is successful in the country. The best of payments in Latin America improves the performance of online stores of all segments and sizes.
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