Emerging markets: How Chile has built its competitive and prosperous economy


March 13th, 2023


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Vesta Software Group

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From the snowy Andes mountains to the arid plains of the Atacama desert, Chile is one of the most geographically diverse, multicultural and progressive countries in the world. Its solid economy and political stability make it a particularly attractive destination to do business right now, especially in the software space.

We ourselves at Vesta Software Group have recently just welcomed our first acquisition in Chile, so what better time to delve into what makes the country one of the most innovative and competitive economies in Latin America?


Chile’s economy has been on the rise since its return to democracy in 1989. Over three decades of business-friendly neoliberal policies, including the lowering of trade barriers and deregulation of capital markets, has prompted investment and economic growth.

In the software industry specifically, strong government backing has meant that the sector is booming, with data from Intelligent Data Corporation (IDC) estimating growth of 8.5% in 2022.

Business climate

With an open, transparent and dynamic business environment, it’s no surprise to see that Chile topped the Latin American chart in the Institute for Management Development’s 2022 World Competitive Ranking. Much of the country’s strengths lie in its relationships with other major economies across the world, having secured free trade agreements with 65 countries that account for around 70% of the world’s population. These include the USA, China and Japan, as well as unions such as the Pacific Alliance and the EU – all of which represent a $3 trillion market.

Its capital, Santiago, continues to be the epicenter of business and IT, though several technological parks and hubs have opened their doors in regions including Valparaíso and Concepción.


In recent years, Chile has become an attractive hub for some of the world’s biggest names in tech – the likes of Google, Oracle, Microsoft and Amazon Web Services have all installed technological infrastructure there. When paired with the launch of the region’s first 5G network in December 2021, the future is poised to be bright for businesses in the IT space.

To support further growth, in May 2022 the Chilean government presented Chile Digital 2035 – a strategy focused on reducing digital inequality and guiding the digital transformation of the country by promoting digital rights, infrastructure development, cyber security and digitalisation of the public sector.

Skills & employment

Chile is home to some of the top universities in Latin America, including Pontificia Universidad Catolica de Chile and Universidad de Chile, which both rank consecutively amongst the 10 best-rated in the region.

Across the country, computer science engineering has quickly emerged as one of the most popular careers as demand for developers continues to rise.

Our view on the country

Given the vibrant business environment in the country, its clear and solid legal framework and positive economic outlooks, we are focused on continuing to grow our footprint in the country to welcome exciting vertical market software companies into the Vesta family. The quality of developers and professional resources in Chile continues to impress us and we are excited to build a strong foundation in the country, spreading from our current base in Santiago to other parts of this wonderful nation.

As we look to supercharge our expansion strategy in Latin America, we would love to speak with more software companies who are looking to pursue the next step in their journey. Get in touch with our team today to start a conversation.