Chile - Economy
Geography - People - Economy - Government - Communications - Transportation - Military - Transnational IssuesChile is located Southern South America, bordering the South Pacific Ocean, between Argentina and Peru. The climate is temperate; desert in north; Mediterranean in central region; cool and damp in south. The terrain is low coastal mountains; fertile central valley; rugged Andes in east.
Economy - overview
This entry briefly describes the type of economy, including the degree of market orientation, the level of economic development, the most important natural resources, and the unique areas of specialization. It also characterizes major economic events and policy changes in the most recent 12 months and may include a statement about one or two key future macroeconomic trends.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. Between 2000 and 2007 growth ranged between 2%-6%. Throughout these years Chile maintained a low rate of inflation with GDP growth coming from high copper prices, solid export earnings (particularly forestry, fishing, and mining), and growing domestic consumption. President BACHELET in 2006 established an Economic and Social Stabilization Fund to hold excess copper revenues so that social spending can be maintained during periods of copper shortfalls. This fund probably surpassed $20 billion at the end of 2007. Chile continues to attract foreign direct investment, but most foreign investment goes into gas, water, electricity and mining. Unemployment has exhibited a downward trend over the past two years, dropping to 7.8% and 7.0% at the end of 2006 and 2007, respectively. 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 claims to have more bilateral or regional trade agreements than any other country. It has 57 such agreements (not all of them full free trade agreements), including with the European Union, Mercosur, China, India, South Korea, and Mexico.
GDP (purchasing power parity)
This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per- capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP- denominated GDP values for most of the wealthy industrialized countries are generally much smaller.GDP (purchasing power parity) : $232.8 billion (2007 est.)
GDP (official exchange rate)
This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at official exchange rates (OER) is the home-currency-denominated annual GDP figure divided by the bilateral average US exchange rate with that country in that year. The measure is simple to compute and gives a precise measure of the value of output. Many economists prefer this measure when gauging the economic power an economy maintains vis-a-vis its neighbors, judging that an exchange rate captures the purchasing power a nation enjoys in the international marketplace. Official exchange rates, however, can be artificially fixed and/or subject to manipulation - resulting in claims of the country having an under- or over-valued currency - and are not necessarily the equivalent of a market-determined exchange rate. Moreover, even if the official exchange rate is market-determined, market exchange rates are frequently established by a relatively small set of goods and services (the ones the country trades) and may not capture the value of the larger set of goods the country produces. Furthermore, OER-converted GDP is not well suited to comparing domestic GDP over time, since appreciation/depreciation from one year to the next will make the OER GDP value rise/fall regardless of whether home- currency-denominated GDP changed.GDP (official exchange rate) : $163.8 billion (2007 est.)
GDP - real growth rate
This entry gives GDP growth on an annual basis adjusted for inflation and expressed as a percent.GDP - real growth rate : 5.1% (2007 est.)
GDP - per capita (PPP)
This entry shows GDP on a purchasing power parity basis divided by population as of 1 July for the same year.GDP - per capita (PPP) : $14,300 (2007 est.)
GDP
GDP - composition by sector - agriculture : 4.8%
GDP - composition by sector - industry : 51.2%
GDP - composition by sector - services : 44% (2007 est.)
Labor force
This entry contains the total labor force figure.Labor force : 7.167 million (2007 est.)
Labor force - by occupation - agriculture : 13.6%
Labor force - by occupation - industry : 23.4%
Labor force - by occupation - services : 63% (2003)
Unemployment rate
This entry contains the percent of the labor force that is without jobs. Substantial underemployment might be noted.Unemployment rate : 7% (2007 est.)
Population below poverty line
Population below poverty line : 18.2% (2005)
Household income or consumption by percentage share
Data on household income or consumption come from household surveys, the results adjusted for household size. Nations use different standards and procedures in collecting and adjusting the data. Surveys based on income will normally show a more unequal distribution than surveys based on consumption. The quality of surveys is improving with time, yet caution is still necessary in making inter-country comparisons.Household income or consumption by percentage share - lowest 10% : 1.4%
Household income or consumption by percentage share - highest 10% : 45% (2003)
Distribution of family income - Gini index
This index measures the degree of inequality in the distribution of family income in a country. The index is calculated from the Lorenz curve, in which cumulative family income is plotted against the number of families arranged from the poorest to the richest. The index is the ratio of (a) the area between a country's Lorenz curve and the 45 degree helping line to (b) the entire triangular area under the 45 degree line. The more nearly equal a country's income distribution, the closer its Lorenz curve to the 45 degree line and the lower its Gini index, e.g., a Scandinavian country with an index of 25. The more unequal a country's income distribution, the farther its Lorenz curve from the 45 degree line and the higher its Gini index, e.g., a Sub-Saharan country with an index of 50. If income were distributed with perfect equality, the Lorenz curve would coincide with the 45 degree line and the index would be zero; if income were distributed with perfect inequality, the Lorenz curve would coincide with the horizontal axis and the right vertical axis and the index would be 100.Distribution of family income - Gini index : 54.9 (2003)
Investment (gross fixed)
This entry records total business spending on fixed assets, such as factories, machinery, equipment, dwellings, and inventories of raw materials, which provide the basis for future production. It is measured gross of the depreciation of the assets, i.e., it includes investment that merely replaces worn-out or scrapped capital.Investment (gross fixed) : 20.6% of GDP (2007 est.)
Budget
This entry includes revenues, expenditures, and capital expenditures. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.Budget - revenues : $44.96 billion
Budget - expenditures : $30.51 billion (2007 est.)
Fiscal year
Fiscal year : calendar year
Public debt
This entry records the cumulative total of all government borrowings less repayments that are denominated in a country's home currency. Public debt should not be confused with external debt, which reflects the foreign currency liabilities of both the private and public sector and must be financed out of foreign exchange earnings.Public debt : 4.1% of GDP (2007 est.)
Inflation rate (consumer prices)
This entry furnishes the annual percent change in consumer prices compared with the previous year's consumer prices.Inflation rate (consumer prices) : 4.4% (2007 est.)
Central bank discount rate
This entry provides the annualized interest rate a country's central bank charges commercial, depository banks for loans to meet temporary shortages of funds.Central bank discount rate : 6% (31 December 2007)
Commercial bank prime lending rate
This entry provides a simple average of annualized interest rates commercial banks charge on new loans, denominated in the national currency, to their most credit- worthy customers.Commercial bank prime lending rate : 8.67% (31 December 2007)
Stock of money
This entry, also known as "M1," comprises the total quantity of currency in circulation (notes and coins) plus demand deposits denominated in the national currency, held by nonbank financial institutions, state and local governments, nonfinancial public enterprises, and the private sector of the economy. The national currency units have been converted to US dollars at the closing exchange rate on the date of the information.Stock of money : $16.6 billion (31 December 2007)
Stock of quasi money
This entry comprises the total quantity of time and savings deposits denominated in the national currency, held by nonbank financial institutions, state and local governments, nonfinancial public enterprises, and the private sector of the economy. When added together with "M1" the total money supply is known as "M2." The national currency units have been converted to US dollars at the closing exchange rate on the date of the information.Stock of quasi money : $80.42 billion (31 December 2007)
Stock of domestic credit
This entry is the total quantity of credit, denominated in the domestic currency, provided by banks to nonbanking institutions. The national currency units have been converted to US dollars at the closing exchange rate on the date of the information.Stock of domestic credit : $127.1 billion (31 December 2007)
Agriculture - products
This entry is an ordered listing of major crops and products starting with the most important.Agriculture - products : grapes, apples, pears, onions, wheat, corn, oats, peaches, garlic, asparagus, beans; beef, poultry, wool; fish; timber
Industries
This entry provides a rank ordering of industries starting with the largest by value of annual output.Industries : copper, other minerals, foodstuffs, fish processing, iron and steel, wood and wood products, transport equipment, cement, textiles
Industrial production growth rate
This entry gives the annual percentage increase in industrial production (includes manufacturing, mining, and construction).Industrial production growth rate : 11.1% (2007 est.)
Electricity - production
This entry is the annual electricity generated expressed in kilowatt-hours. The discrepancy between the amount of electricity generated and/or imported and the amount consumed and/or exported is accounted for as loss in transmission and distribution.Electricity - production : 50.37 billion kWh (2006 est.)
Electricity - consumption
This entry consists of total electricity generated annually plus imports and minus exports, expressed in kilowatt-hours. The discrepancy between the amount of electricity generated and/or imported and the amount consumed and/or exported is accounted for as loss in transmission and distribution.Electricity - consumption : 45.52 billion kWh (2006 est.)
Electricity - exports
This entry is the total exported electricity in kilowatt-hours.Electricity - exports : 0 kWh (2007 est.)
Electricity - imports
This entry is the total imported electricity in kilowatt-hours.Electricity - imports : 1.628 billion kWh (2007 est.)
Electricity
Electricity - production by source - fossil fuel : 47%
Electricity - production by source - hydro : 51.5%
Electricity - production by source - nuclear : 0%
Electricity - production by source - other : 1.4% (2001)
Oil - production
This entry is the total oil produced in barrels per day (bbl/day). The discrepancy between the amount of oil produced and/or imported and the amount consumed and/or exported is due to the omission of stock changes, refinery gains, and other complicating factors.Oil - production : 11,610 bbl/day (2007 est.)
Oil - consumption
This entry is the total oil consumed in barrels per day (bbl/day). The discrepancy between the amount of oil produced and/or imported and the amount consumed and/or exported is due to the omission of stock changes, refinery gains, and other complicating factors.Oil - consumption : 253,000 bbl/day (2006 est.)
Oil - exports
This entry is the total oil exported in barrels per day (bbl/day), including both crude oil and oil products.Oil - exports : 32,500 bbl/day (2005)
Oil - imports
This entry is the total oil imported in barrels per day (bbl/day), including both crude oil and oil products.Oil - imports : 222,900 bbl/day (2006 est.)
Oil - proved reserves
This entry is the stock of proved reserves of crude oil in barrels (bbl). Proved reserves are those quantities of petroleum which, by analysis of geological and engineering data, can be estimated with a high degree of confidence to be commercially recoverable from a given date forward, from known reservoirs and under current economic conditions.Oil - proved reserves : 150 million bbl (1 January 2008 est.)
Natural gas - production
This entry is the total natural gas produced in cubic meters (cu m). The discrepancy between the amount of natural gas produced and/or imported and the amount consumed and/or exported is due to the omission of stock changes and other complicating factors.Natural gas - production : 1.8 billion cu m (2007 est.)
Natural gas - consumption
This entry is the total natural gas consumed in cubic meters (cu m). The discrepancy between the amount of natural gas produced and/or imported and the amount consumed and/or exported is due to the omission of stock changes and other complicating factors.Natural gas - consumption : 4.2 billion cu m (2007 est.)
Natural gas - exports
This entry is the total natural gas exported in cubic meters (cu m).Natural gas - exports : 0 cu m (2007 est.)
Natural gas - imports
This entry is the total natural gas imported in cubic meters (cu m).Natural gas - imports : 2.4 billion cu m (2007 est.)
Natural gas - proved reserves
This entry is the stock of proved reserves of natural gas in cubic meters (cu m). Proved reserves are those quantities of natural gas, which, by analysis of geological and engineering data, can be estimated with a high degree of confidence to be commercially recoverable from a given date forward, from known reservoirs and under current economic conditions.Natural gas - proved reserves : 97.97 billion cu m (1 January 2008 est.)
Current account balance
This entry records a country's net trade in goods and services, plus net earnings from rents, interest, profits, and dividends, and net transfer payments (such as pension funds and worker remittances) to and from the rest of the world during the period specified. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.Current account balance : $7.2 billion (2007 est.)
Exports
This entry provides the total US dollar amount of merchandise exports on an f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.Exports : $67.64 billion f.o.b. (2007 est.)
Exports - commodities
This entry provides a listing of the highest- valued exported products; it sometimes includes the percent of total dollar value.Exports - commodities : copper, fruit, fish products, paper and pulp, chemicals, wine
Exports - partners
This entry provides a rank ordering of trading partners starting with the most important; it sometimes includes the percent of total dollar value.Exports - partners : China 14.8%, US 12.5%, Japan 10.5%, Netherlands 5.8%, South Korea 5.7%, Italy 5.1%, Brazil 5% (2007)
Imports
This entry provides the total US dollar amount of merchandise imports on a c.i.f. (cost, insurance, and freight) or f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.Imports : $43.99 billion f.o.b. (2007 est.)
Imports - commodities
This entry provides a listing of the highest- valued imported products; it sometimes includes the percent of total dollar value.Imports - commodities : petroleum and petroleum products, chemicals, electrical and telecommunications equipment, industrial machinery, vehicles, natural gas
Imports - partners
This entry provides a rank ordering of trading partners starting with the most important; it sometimes includes the percent of total dollar value.Imports - partners : US 16.7%, China 11.2%, Brazil 10.3%, Argentina 9.9% (2007)
Economic aid
Economic aid - recipient : $0 (2006)
Reserves of foreign exchange and gold
This entry gives the dollar value for the stock of all financial assets that are available to the central monetary authority for use in meeting a country's balance of payments needs as of the end-date of the period specified. This category includes not only foreign currency and gold, but also a country's holdings of Special Drawing Rights in the International Monetary Fund, and its reserve position in the Fund.Reserves of foreign exchange and gold : $16.84 billion (31 December 2007 est.)
Debt - external
This entry gives the total public and private debt owed to nonresidents repayable in foreign currency, goods, or services. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.Debt - external : $57.6 billion (31 December 2007)
Stock of direct foreign investment - at home
This entry gives the cumulative US dollar value of all investments in the home country made directly by residents - primarily companies - of other countries as of the end of the time period indicated. Direct investment excludes investment through purchase of shares.Stock of direct foreign investment - at home : $91.49 billion (2007 est.)
Stock of direct foreign investment - abroad
This entry gives the cumulative US dollar value of all investments in foreign countries made directly by residents - primarily companies - of the home country, as of the end of the time period indicated. Direct investment excludes investment through purchase of shares.Stock of direct foreign investment - abroad : $24.68 billion (2007 est.)
Market value of publicly traded shares
This entry gives the value of shares issued by publicly traded companies at a price determined in the national stock markets on the final day of the period indicated. It is simply the latest price per share multiplied by the total number of outstanding shares, cumulated over all companies listed on the particular exchange.Market value of publicly traded shares : $174.6 billion (2006)
Currency (code)
Currency (code) : Chilean peso (CLP)
Currency code
Currency code : CLP
Exchange rates
This entry provides the official value of a country's monetary unit at a given date or over a given period of time, as expressed in units of local currency per US dollar and as determined by international market forces or official fiat. The International Organization for Standardization (ISO) 4217 alphabetic currency code for the national medium of exchange is presented in parenthesis.Exchange rates : Chilean pesos (CLP) per US dollar - 526.25 (2007), 530.29 (2006), 560.09 (2005), 609.37 (2004), 691.43 (2003)
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