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 5.4% in 2000. Unemployment remains stubbornly high, however, putting pressure on President LAGOS to improve living standards. The Argentine financial meltdown has put pressure on the Chilean peso and is slowing the country's economic growth. Meanwhile, Chile and the US are conducting negotiations for a free trade agreement.

GDP purchasing power parity - $153 billion (2001 est.)

GDP - real growth rate 3.1% (2001 est.)

GDP - per capita purchasing power parity - $10,000 (2001 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)

Distribution of family income - Gini index 57.5 (1996)

Inflation rate (consumer prices) 3.5% (2001 est.)

Labor force 5.9 million (2000 est.)

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

Unemployment rate 10.1% (2001)

Budget
revenues: $17 billion
expenditures: $17 billion, including capital expenditures of $NA (2001 est.)

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

Industrial production growth rate 2.5% (2001 est.)

Electricity - production 39.577 billion kWh (2000)

Electricity - production by source
fossil fuel: 51.17%
hydro: 46.36%
other: 2.47% (2000)
nuclear: 0%

Electricity - consumption 37.897 billion kWh (2000)

Electricity - exports 0 kWh (2000)

Electricity - imports 1.09 billion kWh (2000)

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

Exports $18.5 billion (f.o.b., 2001)

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

Exports - partners US 17%, Japan 14%, UK 6%, Brazil 5%, China 5% (2000)

Imports $18 billion (f.o.b., 2001)

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

Imports - partners US 19%, Argentina 16%, Brazil 7%, China 6%, Japan 4% (2000)

Debt - external $39.6 billion (2001)

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

Currency Chilean peso (CLP)

Currency code CLP

Exchange rates Chilean pesos per US dollar - 651.90 (January 2002), 618.70 (2001), 535.47 (2000), 508.78 (1999), 460.29 (1998), 419.30 (1997)

Fiscal year calendar year

NOTE: The information regarding Chile on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Chile Economy 2002 information contained here. All suggestions for corrections of any errors about Chile Economy 2002 should be addressed to the CIA.