Economy - overview:
Chile has a market-oriented economy characterized by a high level of foreign trade. During the early 1990s, Chile's reputation as a role model for economic reform was strengthened when the democratic government of Patricio AYLWIN - which took over from the military in 1990 - deepened the economic reform initiated by the military government. Growth in real GDP averaged 8% during 1991-97, but fell to half that level in 1998 because of tight monetary policies implemented to keep the current account deficit in check and because of lower export earnings - the latter a product of the global financial crisis. A severe drought exacerbated the recession in 1999, reducing crop yields and causing hydroelectric shortfalls and electricity rationing, and Chile experienced negative economic growth for the first time in more than 15 years. Despite the effects of the recession, Chile maintained its reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. By the end of 1999, exports and economic activity had begun to recover, and growth rebounded to 4.2% in 2000. Growth fell back to 3.1% in 2001 and 2.1% in 2002, largely due to lackluster global growth and the devaluation of the Argentine peso. Chile's economy began a slow recovery in 2003, growing 3.2%, and accelerated to 6.1% in 2004-05, while Chile maintained a low rate of inflation. GDP growth benefited from high copper prices, solid export earnings (particularly forestry, fishing, and mining), and stepped-up foreign direct investment. Unemployment, however, remains stubbornly high. Chile deepened its longstanding commitment to trade liberalization with the signing of a free trade agreement with the US, which took effect on 1 January 2004. Chile signed a free trade agreement with China in November 2005, and it already has several trade deals signed with other nations and blocs, including the European Union, Mercosur, South Korea, and Mexico. Record-high copper prices helped to strengthen the peso to a 5�-year high, as of December 2005, and will boost GDP in 2006.
GDP (purchasing power parity):
$185.1 billion (2005 est.)
GDP (official exchange rate):
$115.6 billion (2005 est.)
GDP - real growth rate:
6% (2005 est.)
GDP - per capita (PPP):
$11,300 (2005 est.)
GDP - composition by sector:
agriculture: 6.2%
industry: 46.5%
services: 47.3% (2005 est.)
Labor force:
6.3 million (2005 est.)
Labor force - by occupation:
agriculture: 13.6%
industry: 23.4%
services: 63% (2003)
Unemployment rate:
8% (2005 est.)
Population below poverty line:
18.2% (2005)
Household income or consumption by percentage share:
lowest 10%: 1.2%
highest 10%: 47% (2000)
Distribution of family income - Gini index:
57.1 (2000)
Inflation rate (consumer prices):
3.2% (2005 est.)
Investment (gross fixed):
23.2% of GDP (2005 est.)
Budget:
revenues: $29.2 billion
expenditures: $24.75 billion; including capital expenditures of $3.33 billion (2005 est.)
Public debt:
8.1% of GDP (2005 est.)
Agriculture - products:
grapes, apples, pears, onions, wheat, corn, oats, peaches, garlic, asparagus, beans; beef, poultry, wool; fish; timber
Industries:
copper, other minerals, foodstuffs, fish processing, iron and steel, wood and wood products, transport equipment, cement, textiles
Industrial production growth rate:
6% (2005 est.)
Electricity - production:
45.3 billion kWh (2003)
Electricity - consumption:
44.13 billion kWh (2003)
Electricity - exports:
0 kWh (2003)
Electricity - imports:
2 billion kWh (2003)
Oil - production:
4,000 bbl/day (2005 est.)
Oil - consumption:
228,000 bbl/day (2003 est.)
Oil - exports:
0 bbl/day
Oil - imports:
221,500 bbl/day (2003 est.)
Oil - proved reserves:
150 million bbl (1 January 2004)
Natural gas - production:
1 billion cu m (2003 est.)
Natural gas - consumption:
7.06 billion cu m (2003 est.)
Natural gas - exports:
0 cu m (2002)
Natural gas - imports:
5.337 billion cu m (2002 est.)
Natural gas - proved reserves:
97.98 billion cu m (1 January 2004)
Current account balance:
$309 million (2005 est.)
Exports:
$38.03 billion f.o.b. (2005 est.)
Exports - commodities:
copper, fruit, fish products, paper and pulp, chemicals, wine
Exports - partners:
US 14%, Japan 11.4%, China 9.9%, South Korea 5.5%, Netherlands 5.1%, Brazil 4.3%, Italy 4.1%, Mexico 4% (2004)
Imports:
$30.09 billion f.o.b. (2005 est.)
Imports - commodities:
petroleum and petroleum products, chemicals, electrical and telecommunications equipment, industrial machinery, vehicles, natural gas
Imports - partners:
Argentina 16.8%, US 13.7%, Brazil 11.2%, China 7.5% (2004)
Reserves of foreign exchange and gold:
$16.03 billion (November 2005 est.)
Debt - external:
$44.8 billion (31 October 2005 est.)
Economic aid - recipient:
$0 (2002)
Currency (code):
Chilean peso (CLP)
Exchange rates:
Chilean pesos per US dollar - 560.09 (2005), 609.37 (2004), 691.43 (2003), 688.94 (2002), 634.94 (2001)
Fiscal year:
calendar year
