Chile, along with Costa Rica, ranked as the most prosperous country in the region, according to the latest IMD Latin America and Caribbean Prosperity Rating 2026 report, consolidating its leadership in key areas such as governance, social development, and business dynamism.
This report measures the prosperity of 69 countries using 78 indicators to provide an overall prosperity score for Latin America and the Caribbean.
The study analyzes the situation facing countries in this part of the world and notes that in the 2020s they find themselves at a “complex juncture in their development process.” It adds: “The region has achieved significant social and economic progress over the past three decades, including greater access to education, improvements in health outcomes, greater macroeconomic stability, and the consolidation of electoral democracy in most countries. However, these advances coexist with structural economic stagnation, institutional fragility, limited productivity, and persistent socioeconomic inequality.”
Chile excels in social development and institutional capacity
In the case of Chile, one of its key strengths is its performance in the social empowerment pillar, where it has achieved the highest rating (A1), reflecting progress in human capital, access to services, and living conditions.
The pillar of social empowerment focuses on education, health, inequality, gender inclusion, and digital connectivity as drivers of opportunity creation.
Added to this is a robust institutional framework (A2), which ranks the country among the economies with the greatest stability, predictability, and strength of the rule of law in the region.
“Governance and institutional quality determine the ability of countries in Latin America and the Caribbean to sustain prosperity, manage social expectations, and create the conditions for productive transformation,” the ranking states.
The report also highlights the dynamism of Chile’s business ecosystem ( A2), with positive indicators in business creation and access to financial services—key factors for driving innovation and growth. However, it notes that, like other countries in the region, Chile faces challenges in terms of economic performance, where it is ranked in category B1, underscoring the need to strengthen investment, productivity, and sustained growth.
