1. Chile/Argentina — Economic Fallout
- Publication Date:
- 12-2001
- Content Type:
- Policy Brief
- Institution:
- Oxford Analytica
- Abstract:
- This week's piece examines the impact of Argentina's economic difficulties on Chilean firms. As well as its macroeconomic impact in Chile, reflected principally in currency volatility and a reduction of capital inflows, the Argentine crisis is affecting Chilean firms with investments in or exports to Argentina. It will also have an impact on Chile's tourist industry. Following the exit of many Chilean firms from Argentina over the last two years, those that remain are either in export sectors or have a long-term strategy under which they appear willing to ride out the present crisis. However, many will sustain short-term losses and some smaller investors, particularly in consumer sectors, may be forced out of the market.
- Topic:
- Economics, International Trade and Finance, and Politics
- Political Geography:
- Argentina, South America, and Chile