Chile Infrastructure Report Q4 2009

Despite Chile's strong business rating and government stimulus, the country's infrastructure industry is still strongly feeling the effects of recession. The construction sector is forecast to undergo a contraction of 5.5% year on year. BMI forecasts that the industry will be worth an estimated US$11.52bn in 2009.

While growth is forecast for 2010, the infrastructure sector is expected to stagnate after this until the end of the forecast period in 2014.

There are several major projects underway or planned to increase communication and trade in the region.

One example is the inter-oceanic tunnel designed to link the Argentine port of Buenos Aires to Chile's Valpara?-so. There are also plans for a 150km tunnel connecting Bolivia, Peru and Chile. The tunnel will provide Bolivia with access to the sea and involve construction of a man-made island in the Pacific Ocean. While these projects will undoubtedly bring benefits in the long term, they may allow neighbours to compete more effectively with Chile in the short term.

The business environment in Chile is rated highly with strong scores for country structure and risks.

Overall, it receives a score of 61.4 in BMI's business environment ratings ??