Chile

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

Chile has the most performing economy in Latin America and it is quoted as a role model of economic stability by foreign investors. Chile has pursued generally sound economic policies for nearly three decades. Chile is the largest producer and exporter of copper in the world and the country’s economy is largely dependent on the rise & fall of international copper prices. After a slow down to 4% in 2006 due to a dip in copper production, the growth rate of GDP increased to 6% in 2007. 5% are forecast for 2008. Chile's independent Central Bank pursues a policy of maintaining inflation around 4%. Unemployment has hovered in the 8 -10% of the active population range in recent years and is expected to remain so in the coming few years in spite of strong economic growth. Most international observers blame the high unemployment rate on Chile’s complicated and restrictive labor laws.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	146.76	163.88	169.57e	135.77e	135.52e
GDP (constant prices, annual % change)	4.6	4.7	3.2e	0.1	3.0e
GDP per capita (USD)	8,941	9,881	10,124e	7,994	7,884e
Inflation rate (%)	3.4	4.4	8.7	2.9	3.5e
Unemployment rate (% of the labor force)	7.7	-	7.5	-	-
Current Account (billions USD)	7.15	7.19	-3.44e	-6.50	-6.78
Current Account (in % of GDP)	4.9	4.4	-2.0	-4.8	-5.0e

Source: IMF - World Economic Outlook Database ; CIA - The world factbook

Note: (e) Estimated data

Main sectors of industry

Chile's main sectors of activity are mining (copper, gold and silver), manufactured goods (agrifood processing, chemicals, wood and paper) and agriculture (wine growing, sea products and fruit growing). The agricultural sector contributes nearly 5% to GDP, the industrial sector contributes around 47% and the service sector nearly 48%. The dependence of the economy on copper prices and the production of an adequate food supply are Chile's two major economic problems.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	13.2	23.0	63.9
Value added (in % of GDP)	4.2	47.1	48.7
Value added (annual % change)	3.0	2.9	6.1

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Chilean Peso (CLP) - Average annual exchange rate for 1 USD	609.53	559.77	530.28	522.46	522.46

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 78.3/100
Position:: mostly free
World Rank:: 11 out of 179
Regional Rank:: 1 out of 29

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Chile's economy is highly dependent on international trade. The share of foreign trade in the country’s GDP is above 65%. Chile is strongly committed to free-trade and has signed free trade agreements (FTAs) with several important economies, including the USA., China and South Korea. Chile’s top three export partners are: the USA, Japan and China. Copper exports accounted for 45% of Chilean total exports in 2005. Chile's top three import partners are: Argentina, the USA and Brazil. Chile mainly imports mineral fuels & oils, machinery, vehicles, and electric & electronic equipment.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	17,941	22,935	30,492	35,899	43,991
Exports of goods (millions USD)	21,664	32,520	41,267	58,485	67,644
Imports of services (millions USD)	5,688	6,780	7,756	8,452	9,947
Exports of services (millions USD)	5,070	6,034	7,134	7,824	8,786
Imports of goods and services (annual % change)	9.7	18.4	17.2	10.5	14.3
Exports of goods and services (annual % change)	6.5	13.3	4.3	5.5	7.8
Imports of goods and services (in % of GDP)	32.4	31.6	32.8	30.8	33.3
Exports of goods and services (in % of GDP)	36.5	40.8	41.3	45.7	47.1
Trade Balance (millions USD)	3,723	9,585	10,775	22,587	23,653
Trade Balance (including service) (millions USD)	3,105	8,839	10,153	21,959	22,491
Foreign trade (in % of GDP)	68.9	72.3	74.1	76.5	80.4

Source: World Bank

Main partner countries

Main customers (% of exports)	2007
China	15.2%
United States	12.8%
Japan	10.8%
Netherlands	5.9%
South Korea	5.9%
Italy	5.3%
Brazil	5.1%
France	3.6%
Mexico	3.6%
India	3.4%
Germany	2.5%
Spain	2.0%
Canada	1.8%
Peru	1.6%
Argentina	1.3%
Venezuela	1.3%
Belgium	1.1%
United Kingdom	1.0%
Colombia	0.9%
Bulgaria	0.7%
See more countries	49.4%

Main suppliers (% of imports)	2007
United States	17.0%
China	11.4%
Brazil	10.5%
Argentina	10.1%
South Korea	7.2%
Peru	3.9%
Japan	3.7%
Germany	3.7%
Mexico	3.2%
Canada	2.3%
Angola	2.2%
Colombia	2.1%
Spain	2.0%
Turkey	2.0%
France	1.9%
Ecuador	1.8%
Italy	1.7%
Sweden	0.9%
Thailand	0.9%
United Kingdom	0.9%
See more countries	43.7%

Source: Comtrade

Main products

Main exports (% of exports)	2007
Copper and articles thereofCopper and articles thereof	37.6%
Ores, slag and ashOres, slag and ash	26.2%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	4.2%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	3.9%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	3.6%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	3.0%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.9%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	1.7%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	1.6%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	1.3%
Iron and steelIron and steel	1.2%
Organic chemicalsOrganic chemicals	1.0%
Meat and edible meat offalMeat and edible meat offal	0.9%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.9%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.8%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.7%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	0.7%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.6%
Plastics and articles thereofPlastics and articles thereof	0.5%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	0.5%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.4%
FertilizersFertilizers	0.3%
Articles of iron or steelArticles of iron or steel	0.3%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.3%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	0.3%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.3%
Rubber and articles thereofRubber and articles thereof	0.3%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.2%
CerealsCereals	0.2%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.2%
Lac; gums, resins and other vegetable saps and...Lac; gums, resins and other vegetable saps and extracts	0.1%
Pharmaceutical productsPharmaceutical products	0.1%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.1%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.1%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.1%
Aluminium and articles thereofAluminium and articles thereof	0.1%
Miscellaneous chemical productsMiscellaneous chemical products	0.1%
See more products	24.5%

Main imports (% of imports)	2007
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	26.4%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	13.1%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	10.1%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	8.2%
Plastics and articles thereofPlastics and articles thereof	3.6%
Ores, slag and ashOres, slag and ash	2.8%
Iron and steelIron and steel	2.1%
CerealsCereals	1.7%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.6%
Articles of iron or steelArticles of iron or steel	1.5%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.5%
Rubber and articles thereofRubber and articles thereof	1.4%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.4%
Organic chemicalsOrganic chemicals	1.4%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	1.3%
Pharmaceutical productsPharmaceutical products	1.3%
Miscellaneous chemical productsMiscellaneous chemical products	1.2%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.2%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	1.2%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	1.0%
FertilizersFertilizers	0.9%
Meat and edible meat offalMeat and edible meat offal	0.9%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.9%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.8%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.7%
Aluminium and articles thereofAluminium and articles thereof	0.7%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.6%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.6%
Sugars and sugar confectionerySugars and sugar confectionery	0.5%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.4%
Ceramic productsCeramic products	0.4%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.4%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.4%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.3%
Ships, boats and floating structuresShips, boats and floating structures	0.3%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.3%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.3%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.3%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.3%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.3%
Man-made staple fibresMan-made staple fibres	0.3%
Glass and glasswareGlass and glassware	0.2%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.2%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.2%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.2%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Man-made filamentsMan-made filaments	0.2%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.2%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.2%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.2%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.2%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.2%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.2%
CottonCotton	0.1%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.1%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.1%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.1%
Products of animal origin, not elsewhere specified...Products of animal origin, not elsewhere specified or included	0.1%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.1%
Zinc and articles thereofZinc and articles thereof	0.1%
Cork and articles of corkCork and articles of cork	0.1%
Copper and articles thereofCopper and articles thereof	0.1%
See more products	38.7%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Ministry of the Economy (in Spanish)
Statistical Office: National Statitics Institute
Central Bank: Central Bank of Chile
Stock Exchange: Santiago Stock Exchange
Search Engines: Google.cl
Buscar.cl
Chile busca
Guia websites
Economic portals: Economic information portal of the Chilean Ministry of the Economy
Economy watch
Business News Americas
Latin American Economy
Latin Focus Chile
Estrategia (Chilean business newspaper)

Political outline

Executive Power: President is both the chief of state and head of government, and holds the executive powers. President appoints the Cabinet and has the authority to remove the commanders-in-chief of the armed forces. P resident is elected by popular vote for a single four-year term.
Legislative Power: The legislature is bicameral. The parliament called National Congress consists of: Senate (the upper house) with its members elected by popular vote to serve eight-year terms, and the Chamber of Deputies (the lower house) with its members elected by popular vote to serve four-year. Chile's congressional elections are governed by a unique binomial system that rewards coalition representations. Each coalition can run two candidates for the two Senate and two Deputy seats apportioned to each electoral district and parties are forced to form wide coalitions. Historically, the two largest coalitions (Concertacion and Alianza) split most of the seats in a district. The citizens of Chile enjoy considerable political rights.
Main political parties: The main political parties are: PDC (Christian Democratic Party), PRSD (Radical Social Democratic Party), PS (Socialist Party), PPD (Party for Democracy), RN (National Renewal), UDI (Independent Democratic Union) and PC (Communist Party)
Current political leaders: President: Michelle BACHELET Jeria (since March 2006) – PS, heads center-left Concertacion coalition government.
Next election dates: Presidential: December 2009
National Congress (both Senate and Chamber of Deputies): December 2009

Indicator of freedom of the press

World Rank:: 56/173
Evolution:: 17 places down compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 1/7
Civil liberties:: 1/7

Map of freedom 2007
Source: Freedom House

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