The recent surge in international projections and growth expectations has positioned emerging and developing economies at the forefront of global economic recovery. Amidst this promising trend, Chile has projected a 2-3 percent economic growth in 2024, supported by estimations from international organizations such as the World Bank, the OECD, and the IMF.
In addition to economic growth, international trade projections are also on the rise, pointing to an increase in trade flows over the next few years. These optimistic projections reflect a broader global economic rebound, driven by robust global growth.
Chile, recognized as a reliable and secure investment destination, is focused on diversifying its trade partners and attracting more foreign direct investment (FDI). President Gabriel Boric announced a record-high FDI figure in 2023, signaling strong interest from foreign investors. The country’s emphasis on promoting international ties underscores the crucial role of diversifying destination markets and investment sources to boost growth and productivity.
Despite the global geopolitical challenges characterized by armed conflicts, resource scarcity, and the climate crisis, Chile remains dedicated to fostering resilience in supply chains and strengthening ties with trading partners. In this complex international trade landscape, Chile and Indonesia emerge as complementary partners, both rich in natural resources and seeking to expand their commercial horizons.
The Comprehensive Economic Partnership Agreement (CEPA) between the two countries, initiated in August 2019, has significantly boosted bilateral trade with an average annual growth of 11.2 percent. This robust growth reflects the synergy between both nations and holds immense potential for further mutual economic development.
Furthermore, the inclusion of trade in services into the bilateral economic comprehensive agreement between Chile and Indonesia is a significant step in enhancing commercial exchange. The global 9 percent growth in trade in services in 2023, coupled with the approval of this advancement by the National Congress of Chile, paves the way for increased access to professional services and a predictable exports framework for both countries.
The recent visit to Indonesia to deepen the CEPA and incorporate an investment chapter reaffirms Chile’s commitment to diversifying and strengthening commercial ties. The aim is to set the stage for a future of growth and shared prosperity between the two nations, positioning Indonesia as a platform for integration and rapprochement with Latin America, especially South America.
As Chile looks towards Indonesia as a key market in its diversification strategy, both in terms of its export basket and destinations, this promising partnership holds the potential to enhance the quality of life in both countries.
It is evident that the growing relationship between Chile and Indonesia presents a mutually beneficial opportunity for economic progress and prosperity, reflecting a promising outlook for international trade and collaboration.
The author of this article is the undersecretary of international economic relations of Chile. We appreciate your feedback and thank you for sharing your thoughts.
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