Chile Economy
Economy - overviewChile 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, but recovered to 3.2% in 2003. Unemployment, although declining over the past year, remains stubbornly high, putting pressure on President LAGOS to improve living standards. One bright spot was the signing of a free trade agreement with the US, which took effect on 1 January 2004. In 2004, GDP growth is set to accelerate to more than 4% as copper prices rise, export earnings grow, and foreign direct investment picks up.
GDP
purchasing power parity - $154.7 billion (2003 est.)
GDP - real growth rate
3.3% (2003 est.)
GDP - per capita
purchasing power parity - $9,900 (2003 est.)
GDP - composition by sector
agriculture: 6.4%
industry: 38.6%
services: 55.1% (2003 est.)
Investment
21.2% of GDP (2003)
Population below poverty line
20.6% (2000 est.)
Household income or consumption by percentage share
lowest 10%: 3.7%
highest 10%: 41% (2000)
Distribution of family income - Gini index
56.7 (2000)
Inflation rate
2.8% (2003 est.)
Labor force
6 million (2003 est.)
Labor force - by occupation
agriculture 13.6%, industry 23.4%, services 63% (2003 est.)
Unemployment rate
8.5% (2003 est.)
Budget
revenues: $15.44 billion
expenditures: $16.02 billion, including capital expenditures of $NA (2003 est.)
Public debt
14.8% of GDP (2003)
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
1.5% (2003 est.)
Electricity - production
41.66 billion kWh (2001)
Electricity - consumption
40.13 billion kWh (2001)
Electricity - exports
0 kWh (2001)
Electricity - imports
1.386 billion kWh (2001)
Oil - production
13,640 bbl/day (2001 est.)
Oil - consumption
241,000 bbl/day (2001 est.)
Oil - exports
NA (2001)
Oil - imports
NA (2001)
Oil - proved reserves
81.05 million bbl (1 January 2002)
Natural gas - production
1.2 billion cu m (2001 est.)
Natural gas - consumption
6.47 billion cu m (2001 est.)
Natural gas - exports
0 cu m (2001 est.)
Natural gas - imports
5.27 billion cu m (2001 est.)
Natural gas - proved reserves
67.78 billion cu m (1 January 2002)
Current account balance
$-594 million (2003)
Exports
$20.44 billion f.o.b. (2003 est.)
Exports - commodities
copper, fish, fruits, paper and pulp, chemicals, wine
Exports - partners
US 16.2%, Japan 10.5%, China 8.6%, South Korea 4.7%, Mexico 4.3%, Italy 4.2% (2003)
Imports
$17.4 billion f.o.b. (2003 est.)
Imports - commodities
consumer goods, chemicals, motor vehicles, fuels, electrical machinery, heavy industrial machinery, food
Imports - partners
Argentina 19.4%, US 13%, Brazil 10.4%, China 6.6% (2003)
Reserves of foreign exchange & gold
$15.84 billion (2003)
Debt - external
$43.15 billion (2003)
Currency
Chilean peso (CLP)
Currency code
CLP
Exchange rates
Chilean pesos per US dollar - 691.433 (2003), 688.936 (2002), 634.938 (2001), 535.466 (2000), 508.777 (1999)
