Chile’s Business Formation Surges Despite Economic Headwinds and New Trade Pact

Chile’s Central Bank recently reported a 11.7 percent annual increase in new company registrations for February 2025, marking the fifth consecutive month of gains.

This trend stands out as a signal of entrepreneurial resilience, even as broader economic indicators show mixed signals. The data, sourced from the Central Bank’s Indicators of Enterprise Dynamics, reveal that the country added nearly 8,800 new businesses in February.

Trade, personal services, and business services led this growth. Trade accounted for 3,883 of these new firms, while personal services and business services contributed 1,559 and 1,321, respectively.

Sectors such as real estate, utilities, and mining saw much lower numbers, with mining adding just 28 new companies. At the same time, companies declaring sales grew by 3.4 percent compared to February 2024.

This suggests that not only are more businesses being created, but more are also actively participating in the economy. Despite this positive momentum in business creation, Chile’s overall economic activity index, the Imacec, shrank by 0.1 percent year-on-year in February.

This marked the first downturn since June last year, influenced by a shorter month and a widespread power outage. Mining output dropped sharply, while manufacturing, trade, and services posted modest gains.

Chile’s Business Sector Adapts Amid Trade Shifts

On a seasonally adjusted basis, economic activity fell 0.5 percent from the previous month, but still grew 1.3 percent over the past year. The business landscape is also shifting due to the Interim Trade Agreement between Chile and the European Union, which took effect on February 1, 2025.

This agreement modernizes trade rules, introduces new tariff reductions, and changes the procedures for proving product origin. Chilean exporters now use a unique tax number and must sign export documents, while the EUR.1 certificate is no longer accepted.

These developments show that, while Chilean entrepreneurs continue to launch new ventures at a steady pace, they must navigate a complex environment shaped by economic fluctuations and evolving trade regulations.

The figures reflect a business sector that adapts and seeks opportunities, even as external and internal challenges persist.