Economy overview: Chile’s economy is market-oriented, characterized by a high level of integration into international trade. In the early 1990s Chile’s reputation as a model for economic reform grew when a democratic government, Patricio AYLWIN, came to power after a military regime in 1990 and began to deepen the economic reforms initiated by the military government. GDP growth in real terms averaged 8% during 1991-97 but halved in 1998 due to tight monetary policy to control the balance of payments and the decline in export earnings that consequence of the global financial crisis. A severe drought exacerbated the recession in 1999, damaging crops and causing hydropower shortages and supply restrictions. For the first time in more than 15 years, Chile experienced a recession. Despite this, Chile has retained its reputation in the eyes of financial institutions and confirmed the correctness of its policies, which provided it with the highest investment rating in South America. By the end of 1999, exports and economic activity began to recover and growth in 2000 was 5.5%. Unemployment, however, remains stubbornly high, forcing the president of LAGOSA to worry about rising living standards. Free trade negotiations between Chile and the United States have begun. See businesscarriers.com to know more about Chile Economics and Business.
GDP: at purchasing power parity – $153.1 billion (2000 est.).
Real GDP growth rate: 5.5% (2000 est.).
GDP per capita: at purchasing power parity – $10,100 (2000 est.).
The composition of GDP by sectors of the economy: agriculture: 8%; industry: 38%; services: 54% (2000).
Proportion of population below the poverty line: 22% (1998 est.).
Percent distribution of family income or consumption: per 10% of the poorest families: 1.2%; by the top 10% of families: 41.3% (1998).
Inflation rate at consumer prices: 4.5% (2000 est.).
Labor force: 5.8 million people (1999 est.).
Employment structure: agriculture 14%, industry 27%, services 59% (1997 est.).
Unemployment rate: 9% (December 2000).
Budget: revenues: $16 billion; expenditures: $17 billion, including capital expenditures – NA (2000 est.).
Economic sectors: mining of copper and other minerals, food production, fish processing, iron and steel smelting, logging and woodworking, production of transport equipment, cement, textiles.
Growth in industrial production: 6% (2000 est.).
Electricity generation: 38.092 billion kWh (1999)
Sources of electricity generation: fossil fuels: 61%; hydropower: 35%; nuclear fuel: 0%; others: 4% (1999).
Electricity consumption: 35.426 billion kWh (1999)
Electricity export: 0 kWh (1999).
Electricity import: 0 kWh (1999).
Agricultural products: wheat, corn, grapes, legumes, sugar beets, potatoes, fruits; beef, poultry, wool; fish; wood.
Export: $18 billion (free on board, 2000)
Exports: copper, fish, fruits, paper and pulp, chemicals.
Export partners: EU 27%, USA 16%, Japan 14%, Brazil 6%, Argentina 5% (1998).
Imports: $17 billion (free on board, 2000)
Import articles: consumer goods, chemicals, motor vehicles, fuels, electrical equipment, heavy industry equipment, foodstuffs.
Import partners: US 24%, EU 23%, Argentina 11%, Brazil 6%, Japan 6%, Mexico 5% (1998).
External debt: $39 billion (2000) Economic aid recipient: official development support – $40 million (2001 est.).
Economic aid donor:
Currency: Chilean peso.
Currency code: CLP.
Exchange rate: CLP/USD – 571.12 (January 2001), 535.47 (2000), 508.78 (1999), 460.29 (1998), 419.30 (1997), 412.27 (1996).
Fiscal year: calendar year.
Telecommunications Telephone lines: 2.603 million (1998).
Mobile cellular phones: 944 225 (1998).
Telephone system: modern system based on the widespread use of microwave radio relay; internal: a wide network of microwave radio relay transmitters; internal satellite communication system with three ground stations; international: satellite earth stations 2 Intelsat (Atlantic Ocean).
Broadcast stations: AM – 180 (8 inactive), FM -64, shortwave – 17 (1 inactive) (1998).
Radio receivers: 5.18 million (1997)
Television broadcast stations: 63 (and 121 repeaters) (1997).
Televisions: 3.15 million (1997)
Internet country code: cl
Internet Service Providers: 7 (2000).
Number of users: 625,000 (2000).
Transport Railways: total: 6,701 km; broad gauge: 2,831 km (1.676 m gauge) (1,317 km electrified); narrow gauge: 117 km (1.067 m gauge) (28 km electrified); 3,754 km (1,000 m gauge) (37 km electrified) (2000).
Roads: total: 79,800 km; coated: 11,012 km; unpaved: 68,788 km (1996)
Waterways: 725 km.
Pipelines: for crude oil – 755 km; for oil products – 785 km; for natural gas – 320 km.
Ports and harbors: Antofagasta, Arica, Valparaiso, Iquique, Coquimbo, Punta Arenas, Puerto Montt, San Antonio, San Vicente, Talcahuano, Chanyaral.
Merchant navy: total: 44 vessels (displacement 1,000 tons or more) with a total displacement of 606,506 gross register tons / 884,023 long tons of gross tonnage; ships of various types: bulk carriers – 11, cargo ships – 7, chemical tankers – 8, container ships – 4, liquefied gas tankers – 2, passenger ships – 3, oil tankers – 4, ferries for the transport of loaded vehicles – 3, cargo ships for transportation – 2 (2000 est.).
Airports: 366 (2000 est.).
Airports with paved runways: total: 69; over 3,047 m: 6; from 2438 to 3047 m: 6; from 1,524 to 2,437 m: 22; from 914 to 1,523 m: 21; less than 914 m: 14 (2000 est.).
Airports with unpaved runways: total: 297; over 3,047 m: 1; from 2438 to 3047 m:4; from 1524 to 2437 m:11; from 914 to 1523 m:62; less than 914 m: 219 (2000 est.).
Branches of the armed forces: army, navy (including naval aviation, coast guard and marines), air force, carabinieri (national police), investigative police; note: normally subordinate to the Ministry of the Interior, in emergencies the carabinieri and the investigative police are considered part of the armed forces.
Enlistment age: 19 years old.
Total Military Manpower: Male 15 to 49: 4,057,466 (2001 est.).
Eligible for military service: men aged 15 to 49: 3,003,134 (2001 est.).
Number of persons reaching military age each year: male: 136,830 (2001 est.).
Military spending in dollar terms: $2.5 billion (1999)
Military spending as part of GDP: 3.1% (1999).
International issues International disputes: Bolivia wants a sovereign corridor to the Pacific Ocean since the Atacama region was ceded to Chile in 1884; dispute with Bolivia over rights to the waters of the Rio Laus; territorial claims in Antarctica (Antarctic Territory of Chile) overlap with those of Argentina and the UK.
Illicit drugs: growing use of the country to transit cocaine destined for the US and Europe; economic prosperity has made the country more attractive for laundering drug proceeds; domestic consumption of cocaine is on the rise.