Chile Economy 2001

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 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 5.5% in 2000. Unemployment remains stubbornly high, however, putting pressure on President LAGOS to improve living standards. Meanwhile, Chile has launched free trade negotiations with the US.

GDP: purchasing power parity - $153.1 billion (2000 est.)

GDP - real growth rate: 5.5% (2000 est.)

GDP - per capita: purchasing power parity - $10,100 (2000 est.)

GDP - composition by sector:
agriculture: 8%
industry: 38%
services: 54% (2000)

Population below poverty line: 22% (1998 est.)

Household income or consumption by percentage share:
lowest 10%: 1.2%
highest 10%: 41.3% (1998)

Inflation rate (consumer prices): 4.5% (2000 est.)

Labor force: 5.8 million (1999 est.)

Labor force - by occupation: agriculture 14%, industry 27%, services 59% (1997 est.)

Unemployment rate: 9% (December 2000)

Budget:
revenues: $16 billion
expenditures: $17 billion, including capital expenditures of $NA (2000 est.)

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

Industrial production growth rate: 6% (2000 est.)

Electricity - production: 38.092 billion kWh (1999)

Electricity - production by source:
fossil fuel: 61%
hydro: 35%
nuclear: 0%
other: 4% (1999)

Electricity - consumption: 35.426 billion kWh (1999)

Electricity - exports: 0 kWh (1999)

Electricity - imports: 0 kWh (1999)

Agriculture - products: wheat, corn, grapes, beans, sugar beets, potatoes, fruit; beef, poultry, wool; fish; timber

Exports: $18 billion (f.o.b., 2000)

Exports - commodities: copper, fish, fruits, paper and pulp, chemicals

Exports - partners: EU 27%, US 16%, Japan 14%, Brazil 6%, Argentina 5% (1998)

Imports: $17 billion (f.o.b., 2000)

Imports - commodities: consumer goods, chemicals, motor vehicles, fuels, electrical machinery, heavy industrial machinery, food

Imports - partners: US 24%, EU 23%, Argentina 11%, Brazil 6%, Japan 6%, Mexico 5% (1998)

Debt - external: $39 billion (2000)

Economic aid - recipient: ODA, $40 million (2001 est.)

Currency: Chilean peso (CLP)

Currency code: CLP

Exchange rates: Chilean pesos per US dollar - 571.12 (January 2001), 535.47 (2000), 508.78 (1999), 460.29 (1998), 419.30 (1997), 412.27 (1996)

Fiscal year: calendar year

NOTE: The information regarding Chile on this page is re-published from the 2001 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Chile Economy 2001 information contained here. All suggestions for corrections of any errors about Chile Economy 2001 should be addressed to the CIA.