A Chilean business leader gifted the country's economy minister with an inflatable sex doll on stage at an event Tuesday night, sparking a social media frenzy and criticism from President Michelle Bachelet.

The exporters association, 'Asexma', traditionally gives humorous gifts to the VIPs attending the annual dinner, but the inflated sex doll which was handed to the economy minister Luis Cespedes with the comment that the sex doll could be used to "stimulate the economy", backfired.

Photos of the event in the local media showed a grinning Cespedes holding the life sized doll on stage, alongside other male ministers clutching their gifts, which included a blond wig to represent US president-elect Donald Trump.

Unfortunately, Michelle Bachelet (the first female President of Chile) didn't see the humour in this choice of gift and tweeted out about the disrespect it has towards women.

Her comment has been retweeted more than 1,200 times.

Bachelet ran the country between 2006 and 2010 and began her second term in 2014, with her first administration, notable for the number of women appointed to cabinet posts. In between the two terms, she led UN Women.

However, blatant inequalities persist in many areas of Chile with access to abortions still being illegal, skimpily dressed female promoters still being a common sight at business and sporting events, and women's participation in the labour market still remains relatively low.

Political scientist, Cristobal Bellolio, tweeted out that "the event with the Asexma doll proves right those who say that our business world is ignorant and isolationist".

Cespedes said the gift was unexpected, but apologized as did Asexma's head, Roberto Fantuzzi.