Chile's Economy | Chilean Economy

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 5.8% in 2004. 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.

GDP: 3.8% (2004)

GDP - real growth rate: 5.8% (2004 est.)

GDP - per capita: purchasing power parity - $10,700 (2004 est.)

GDP - composition by sector: agriculture: 6.3% industry: 38.2% services: 55.5% (2004 est.)

Population below poverty line: 20.6% (2000)

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):

Labor force: 6.2 million (2004 est.)

Labor force - by occupation: agriculture 13.6%, industry 23.4%, services 63% (2003)

Unemployment rate: 8.5% (2004 est.)

Budget: revenues: $21.53 billion expenditures: $19.95 billion, including capital expenditures of $3.33 billion (2004 est.)

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

Industrial production growth rate: 7.8% (2004 est.)

Electricity - production: 48.6 billion kWh (2004)

Electricity - production by source:

Electricity - consumption: 41.8 billion kWh (2002)

Electricity - exports: 0 kWh (2002)

Electricity - imports: 1.813 billion kWh (2002)

Oil - production: 18,500 bbl/day (2003 est.)

Oil - consumption: 240,000 bbl/day (2003 est.)

Oil - exports: 0 bbl/day (2003)

Oil - imports: 221,500 bbl/day (2003 est.)

Oil - proved reserves: 150 million bbl (1 January 2004)

Natural gas - production: 1.18 billion cu m (2002 est.)

Natural gas - consumption: 6.517 billion cu m (2002 est.)

Natural gas - exports: 0 cu m (2002)

Natural gas - imports: 5.337 billion cu m (2002 est.)

Natural gas - proved reserves: 99.05 billion cu m (1 January 2004)

Agriculture - products: grapes, apples, pears, onions, wheat, corn, oats, peaches, garlic, asparagus, beans, beef, poultry, wool; fish; timber

Exports: $29.2 billion f.o.b. (2004 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: $22.53 billion f.o.b. (2004 est.)

Imports - commodities: petroleum and petroleum products, chemicals, electrical and telecommunications equipment, industrial machinery, vehicles, natural gas

Imports - partners: Argentina 17%, US 14%, Brazil 11.2%, China 7.4% (2004)

Debt - external: $44.6 billion (2004 est.)

Economic aid - recipient: ODA, $0 (2002)

Currency:

Currency code:

Exchange rates: Chilean pesos per US dollar - 609.37 (2004), 691.43 (2003), 688.94 (2002), 634.94 (2001), 539.59 (2000)

Fiscal year: calendar year



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