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The Medical Device Market: Chile
Espicom Business Intelligence Ltd, Oct 2011, Pages: 64
With a population of 17.3 million in 2011, Chile is one of the smaller countries in South America. Around 40% of the population live in and around the capital, Santiago. The country made a successful transition to democracy following the retirement of General Pinochet in 1989. Sebastien Pinera from the centre right party became President on 11th March 11th 2010 ending two decades of rule by the centre left.
Chile suffered a large earthquake in February 2010, which killed 500 people and caused US$30 billion of damage, which is around 15% of Chile’s GDP in 2010. The economy has seen growth in the first quarter 2010 and has moved out of recession, although the earthquake has weakened this growth. Pinera agreed an US$8.4 billion reconstruction plan during 2010.
Whilst the Chilean medical market for medical equipment and supplies, at US$453 million in 2010, is small by international standards, at a per capita level it is the highest in South America.
Chile is one the region’s better economic performers, and the EIU revised its estimates upwards in May 2010, GDP per capita being valued at US$11,730 in 2011. In Latin America, only oil-rich Venezuela has a larger figure. Chile has generally avoided regional trading blocs such as Mercosur, preferring bilateral agreements such as its Free Trade Agreement with the USA.
From mid 2008 to mid 2009, a drop of 50% in global copper prices and the world recession shrank GDP and unemployment increased rapidly. During the rest of 2009 copper prices recovered and activity bottomed out by the end of the year. By December 2010, copper prices were at their highest for three years, but in January 2011, the peso has been weakened as copper prices fall again. Chile is the world’s third largest supplier of copper and so is economically reliant on its price.
In 2009, the government activated a US$4 billion economic recovery package as a reaction to global financial problems. This included spending US$700 million on public works and tax incentives for SME’s as well as subsidies for low income families.
As in much of Latin America, healthcare provision is a complex mixture of public, private and social insurance, although the current government is implementing plans aimed at creating a more efficient public system. Chile has a relatively well-developed system of private health insurance, the ISAPRE system, although this has been hit financially in recent years. The ISAPRE system has come under criticism lately for treating patients unequally. The government plans to simplify it and make it fairer for all.
Chile produces very little medical equipment, so the market is largely supplied by imports, with a US$334.3 million balance of trade deficit in 2009. The USA is the dominant supplier, accounting for 40% of imports, with the European Union supplied 26.1%, of which Germany accounts for around half.
Includes 3 quarterly updated outlook reports!
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