Swedish companies have been present in Chile, Argentina and Peru for an average of 45 years, with some of them having established more than 110 years ago. Trade relations between Sweden and the three South American countries keep increasing as their commercial bonds strengthen. Sweden as a brand enjoys a broad positive reception in the markets as consumers relate it to quality, innovation and reliability.
The Chilean economy is known as one of the most stable in Latin America and the country is the most prosperous in the region due to its transparency, democracy and independent institutions along with its consistent economic growth. This has enabled Chile, as only South American country, to enter into the OECD.
The recent government change is expected to boost the country’s attractiveness as an investment destination. The country’s large and important mining industry is facing challenges related to optimisation, productivity and innovation, where Chilean mining companies have historically found a loyal partner in Sweden. Energy and renewables is one of the most attractive sectors given the positive investment environment and the industry is forecasted to continue expanding, making the 70% renewable energy generation goal for 2050 highly attainable. The information and communication technology (ICT) sector also presents transversal opportunities in collaboration with other sectors in terms of infrastructure and mining, on its way to fulfil the digitalisation of the economy.
According to the World Bank, the International Monetary Fund, the OCDE and the Inter-American Development Bank; the Argentinian economy is expected to grow around 3% in 2018 and maintain such growth rate in the short and medium term; a high contrast to its past record on economic stagnation and even contraction.
Due to poor economic performance from the previous administration, there has been an investment gap that the new government is putting focus on through large investments, both from the private and public sector. The Public-Private Partnerships are gaining weight as international financing institutions engage in closing this gap by providing substantial investment in key sectors such as infrastructure, energy, water and waste, ICT and oil and gas.
Peruvian real GDP growth has averaged 5.7 percent in the last decade, as the economy has been characterized by macroeconomic and financial stability. The country had due its stable democratic political system, its low inflation rate over the past decades and its open economy seen its middle class grow very rapidly.
Peru is the second largest copper and silver producer in the world as of 2017, positioning mining as one of the leading sectors in the country. However, energy demand in the country is also expected to increase in the short and medium term, opening new opportunities for generation, distribution and transmission projects; along with an ambitious investment plan for infrastructure after a recent devastating flood, which affected large parts of the country’s territory. Healthcare is also a sector in which many Swedish companies have actively participated, given the national plans displayed in order to tackle several nationwide challenges such as cancer, anaemia, HIV and others.
In the attached document, you will find more information about the latest trends in these three markets as of the beginning of 2018.
Contact us and we can tell you more about how Business Sweden can support you with counselling, market analysis, contacts and other services to facilitate your expansion in these markets.