Jane Chambers

You're listening to Business Daily from the BBC.

I'm Jane Chambers, finding out why neighbouring Chile is such an attractive shopping destination for Argentinians, and is it a trend that can last?

Chile has a unique selling point, which Argentinians are keen to take advantage of.

Back at the Viña outlet park, I talked to store owner Jorge Aranda, who runs a sports shop called Norwest Store.

When Jorge tells me about expensive gum shields, this ties in with Argentina's history of protectionism, as Robert Funk, professor of political science in the Faculty of the Government in the University of Chile, explains.

These goods, if they are available in Argentina, are often subject to much higher import taxes.

That's because when inflation in Argentina was soaring and unpredictable, lenders found it hard to predict what money would be worth, and it devalued.

making it hard for Argentinians to get credit.

And often prices in Chile were lower, making it a much more attractive proposition.

But there are two sides of the story.

A few years ago, before President Malay took office in December 2023, the economic situation in Argentina made it a popular destination for tourists from Chile and elsewhere.

And what about you just personally?

Were you one of the many people living here in Chile who went over to Argentina a few years ago and enjoyed how things were?

Because I certainly was.

Back at the shopping outlet in Viña del Mar, I get chatting with some more Argentinians, Ricardo and his family.

I want to know if he thinks the economic situation is getting better in his country.

There isn't as much inflation now as there was before.

But are you happy with the economic situation?

But in the meantime, there are still bargains to be had in Chile.

Car parts are another popular buy.