Chile:

Country Economic Overview

An overview of the chilean economy

Contents

An Overview of the Economy

During the late 1990s the Chilean economy was affected by the Asian Financial Crisis and a severe drought caused widespread damage to crop yields and a sharp decrease in hydro-electric power which weakened the economy for several years. By 2003 the country was recovering and had still maintained a low level of inflation, not exceeding 5% since 1998. Chile is strongly committed to free trade and has a multitude of FTAs with several different countries and governing bodies including the EU. The country has a lot of foreign investment that tends to focus on gas, water, electricity and mining.

statistics  
GDP (PPP) (IMF) (US$Billions) 231.1
GDP (PPP) (CIA) (US$Billions) 231.1
GDP Growth (IMF) (%) 5%
GDP Growth (CIA) (%) 5%
GDP Per Capita (PPP) (IMF) (US$) 19,936
GDP Per Capita (PPP) (CIA) (US$) 13,900
GDP by Sector (%) Agriculture: 4.8%
Services: 44%
Industry: 51.2%
Inflation (%) 4.4%
Population Below the Poverty Line (%) 18.2%
Labour Force (Millions) 6.97
Labour Force by Occupation (%) Agriculture: 13.6%
Services: 63%
Industry: 23.4%
Unemployment (%) 7%
Main Industries Copper, other minerals, foodstuffs, fish processing,
iron and steel, wood and wood products, transports
equipment, cement, textiles

Source: CIA World Factbook, IMF

GDP

Chile has had moderate GDP growth rates in the last five years ranging between 4%-6%. The country has maintained low inflation rates of fewer than 5% for the last decade.

economic indicators 2003 2004 2005 2006 2007
GDP (US$billions) 73.9 95.8 118.9 145.8 163.8
GDP Growth (%) 4% 6% 5.7% 4% 5%
GDP Per Capita (US$) 4,698 5,992 7,351 8,903 9,879
GDP Per Capita (PPP) (US$) 10,713 11,475 12,346 13,083 13,936
Inflation (%) 2.8% 1.1% 3.1% 3.4% 4.4%
Unemployment (%) 9.2% 8.5% 8.5% 8.1% 7.0%
Mobile Phone Users 944,225 6,445,700 6,445,700 10,570,000 10,570,000
Internet Users 3,100,000 3,575,000 3,575,000 6,700,000 6,700,000

Source: IMF, CIA World Factbook

Major Exports & Imports

Chile has very high levels of foreign trade which has been typically dependent on the country's copper reserves which are predicted to be in supply for 200 years. The country has also become the fifth largest wine exporter in the world. China and the US are Chile's main import and export partners but the country has extensive global trade links.

Major Exports 2007

Copper, fruit, fish products, paper and pulp, chemicals, wine.

Major Imports 2007

Petroleum and petroleum products, chemicals, electrical and telecommunications equipment, industrial machinery, vehicles, natural gas.

export partners 2007 % of total
China 14.8%
US 12.5%
Japan 10.5%
Netherlands 5.8%
South Korea 5.7%
Italy 5.1%
Brazil 5%
Import partners 2007 % of total
US 16.7%
China 11.2%
Brazil 10.3%
Argentina 9.9%
Source: CIA World Factbook Top

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