Chile Economy - 2021

Economic overview

Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. Exports of goods and services account for approximately one-third of GDP, with commodities making up some 60% of total exports. Copper is Chile’s top export and provides 20% of government revenue.

From 2003 through 2013, real growth averaged almost 5% per year, despite a slight contraction in 2009 that resulted from the global financial crisis. Growth slowed to an estimated 1.4% in 2017. A continued drop in copper prices prompted Chile to experience its third consecutive year of slow growth.

Chile deepened its longstanding commitment to trade liberalization with the signing of a free trade agreement with the US, effective 1 January 2004. Chile has 26 trade agreements covering 60 countries including agreements with the EU, Mercosur, China, India, South Korea, and Mexico. In May 2010, Chile signed the OECD Convention, becoming the first South American country to join the OECD. In October 2015, Chile signed the Trans-Pacific Partnership trade agreement, which was finalized as the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) and signed at a ceremony in Chile in March 2018.

The Chilean Government has generally followed a countercyclical fiscal policy, under which it accumulates surpluses in sovereign wealth funds during periods of high copper prices and economic growth, and generally allows deficit spending only during periods of low copper prices and growth. As of 31 October 2016, those sovereign wealth funds - kept mostly outside the country and separate from Central Bank reserves - amounted to more than $23.5 billion. Chile used these funds to finance fiscal stimulus packages during the 2009 economic downturn.

In 2014, then-President Michelle BACHELET introduced tax reforms aimed at delivering her campaign promise to fight inequality and to provide access to education and health care. The reforms are expected to generate additional tax revenues equal to 3% of Chile’s GDP, mostly by increasing corporate tax rates to OECD averages.

Real GDP growth rate

1.03% (2019 est.)

4% (2018 est.)

1.41% (2017 est.)

Inflation rate (consumer prices)

2.2% (2019 est.)

2.7% (2018 est.)

2.1% (2017 est.)

Credit ratings

Fitch rating: A- (2020)

Moody's rating: A1 (2018)

Standard & Poors rating: A+ (2017)

Real GDP (purchasing power parity)

$459.134 billion (2019 est.)

$454.344 billion (2018 est.)

$437.082 billion (2017 est.)

note: data are in 2010 dollars

GDP (official exchange rate)

$282.655 billion (2019 est.)

Real GDP per capita

$24,226 (2019 est.)

$24,259 (2018 est.)

$23,664 (2017 est.)

note: data are in 2010 dollars

Gross national saving

18.9% of GDP (2019 est.)

18.6% of GDP (2018 est.)

18.9% of GDP (2017 est.)

GDP - composition, by sector of origin

agriculture: 4.2% (2017 est.)

industry: 32.8% (2017 est.)

services: 63% (2017 est.)

GDP - composition, by end use

household consumption: 62.3% (2017 est.)

government consumption: 14% (2017 est.)

investment in fixed capital: 21.5% (2017 est.)

investment in inventories: 0.5% (2017 est.)

exports of goods and services: 28.7% (2017 est.)

imports of goods and services: -27% (2017 est.)

Ease of Doing Business Index scores

Overall score: 72.6 (2020)

Starting a Business score: 91.4 (2020)

Trading score: 80.6 (2020)

Enforcement score: 64.7 (2020)

Agricultural products

grapes, apples, wheat, sugar beet, milk, potatoes, tomatoes, maize, poultry, pork

Industries

copper, lithium, other minerals, foodstuffs, fish processing, iron and steel, wood and wood products, transport equipment, cement, textiles

Industrial production growth rate

-0.4% (2017 est.)

Labor force

7.249 million (2020 est.)

Labor force - by occupation

agriculture: 9.2%

industry: 23.7%

services: 67.1% (2013)

Unemployment rate

7.22% (2019 est.)

7.33% (2018 est.)

Population below poverty line

8.6% (2017 est.)

Gini Index coefficient - distribution of family income

44.4 (2017 est.)

57.1 (2000)

Household income or consumption by percentage share

lowest 10%: 1.7%

highest 10%: 41.5% (2013 est.)

Budget

revenues: 57.75 billion (2017 est.)

expenditures: 65.38 billion (2017 est.)

Taxes and other revenues

20.8% (of GDP) (2017 est.)

Budget surplus (+) or deficit (-)

-2.8% (of GDP) (2017 est.)

Public debt

23.6% of GDP (2017 est.)

21% of GDP (2016 est.)

Fiscal year

calendar year

Current account balance

-$10.933 billion (2019 est.)

-$10.601 billion (2018 est.)

Exports

$90.626 billion (2019 est.)

$92.772 billion (2018 est.)

$88.376 billion (2017 est.)

Exports - partners

China 32%, United States 14%, Japan 9%, South Korea 7% (2019)

Exports - commodities

copper, wood pulp, fish fillets, pitted fruits, wine (2019)

Imports

$87.505 billion (2019 est.)

$89.578 billion (2018 est.)

$83.01 billion (2017 est.)

Imports - partners

China 24%, United States 20%, Brazil 8%, Germany 5%, Argentina 5% (2019)

Imports - commodities

refined petroleum, crude petroleum, cars, broadcasting equipment, delivery trucks (2019)

Reserves of foreign exchange and gold

$38.98 billion (31 December 2017 est.)

$40.49 billion (31 December 2016 est.)

Debt - external

$193.298 billion (2019 est.)

$181.089 billion (2018 est.)

Exchange rates

Chilean pesos (CLP) per US dollar -

738.81 (2020 est.)

770.705 (2019 est.)

674.25 (2018 est.)

658.93 (2014 est.)

570.37 (2013 est.)