Economical overview
Chile is regarded as the most economically
successful country in South America, with steady growth,
high investment and low foreign debt. The economy is
liberalized and free trade oriented. The mining industry
is central and copper alone accounts for half of the
export revenue.
Since the colonial era, the economy has been heavily
dependent on commodity exports from agriculture and
mines. From the 1930s copper extraction was expanded
with the help of capital from the United States. Chile
has been the world's largest copper producer since the
early 1980s. At most, copper accounted for around 80
percent of exports. In addition to other minerals and
metal products (see Natural Resources, Energy and the
Environment), products that have taken over part of the
copper's role include vegetables, fruits, wine, wood and
fish.
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Countryaah.com:
Major imports by Chile, covering a full list of top products imported by the country and trade value for each product category.
The economic development has generally been good for
a long period. High copper prices and growing metal
exports to China have contributed to the positive
development. However, the country's large dependence on
trade makes it sensitive to fluctuations in the
international economy.
During the 1990s, GDP increased by an average of 8
per cent per year, despite the fact that Chile in
1998-99 experienced a recession. During the 00s, the
average was 4 percent and from 2010 growth was around 6
percent per year. The country recovered quickly from the
global financial crisis in 2009, when the economy
temporarily shrunk. It was mainly saved assets from the
income of copper that helped the country on the right
course again. However, the growth rate has slowed in
recent years.
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Abbreviationfinder.org: Check this abbreviation website to find three letter ISO codes for all countries in the world, including CHL which represents the country of Chile.
Member of the OECD
The military regime partially recovered from the deep
debt crisis of the 1980s by selling off government
assets in exchange for the government's debt being
written off. In the 1990s and 2000s, external debt has
been sharply reduced in line with the growth of the
economy. The well-managed economy, together with reforms
in the financial sector, approved Chile in early 2010 as
the first South American country to become a member of
the economic cooperation organization OECD.
Chile has close to 60 bilateral and regional free
trade agreements, including with most Latin American
countries, the free trade association Efta (Iceland,
Norway, Switzerland and Liechtenstein), Canada, USA,
South Korea, China and India and others. Asia, with
Japan and China, is the export market that grew the most
in the 2000s and China passed the US in 2007 as the
largest single customer of the Chilean export companies.
However, the United States is still Chile's most
important importing country. Trade with the EU has also
increased since a free trade agreement was concluded in
2003.
Pacific Agreement
Chile was also involved when twelve countries around
the Pacific signed the Free Trade Agreement TPP
(Trans-Pacific Partnership) in 2016. One purpose of the
agreement was to counterbalance China's dominance in
Asia. In its original form, the TPP would have covered
40 percent of the world economy, but it failed before it
came into force when the US withdrew after Trump's
entry. However, the remaining eleven countries decided
to stick to the agreement. They together account for
about 14 percent of the world economy and have a total
population of over 500 million, which is more than the
EU. After some adjustments, they signed in March 2018
under the TPP-11, or CPTPP (Comprehensive and
Progressive Agreement for Trans-Pacific Parthership).
The agreement means that tariffs will be lowered between
the countries and, according to the hopes, will
contribute to increased growth. CPTPP includes economic
heavyweights such as Japan, Canada and Australia. Other
Latin American countries in the CPTPP are Mexico and
Peru.
Since 1996, Chile has an association agreement with
the South American Customs Union Mercosur, which has
resulted in a gradual reduction in tariff rates on a
number of products. After a 15-year transition period,
virtually all the last trade barriers between Chile and
Mercosur were abolished in 2011. Only a small number of
goods are still subject to tariff. Mercosur consists of
Argentina, Brazil, Paraguay and Uruguay, as well as
Venezuela, which is, however, suspended.
FACTS - FINANCE
GDP per person
US $ 15,923 (2018)
Total GDP
US $ 298,231 million (2018)
GDP growth
4.0 percent (2018)
Agriculture's share of GDP
3.6 percent (2018)
Manufacturing industry's share of GDP
10.6 percent (2018)
The service sector's share of GDP
57.9 percent (2018)
Inflation
2.2 percent (2019)
Government debt's share of GDP
25.6 percent (2018)
Currency
peso
Merchandise exports
US $ 75,452 million (2018)
Imports
US $ 70,783 million (2018)
Current account
- US $ 9,157 million (2018)
Commodity trade's share of GDP
50 percent (2018)
Main export goods
cups, fruits, wines, vegetables, fishmeal, salmon,
wood, paper, pulp, frozen agricultural products, soft
drinks, electrical equipment
Largest trading partner
USA, Argentina, Brazil, China, Japan, South Korea
2011
December
The Minister of Education resigns
Minister of Education Felipe Bulnes leaves his post after only five months.
He has led fruitless negotiations with the protesting students. This is Piñera's
fourth government reform in a year. The president's popularity figures have now
dropped to 23 percent.
October
Strikes and student protests
October 18
A new nationwide strike begins when negotiations between the government and
students are stranded. Police deploy tear gas and water cannons against
protesters in the capital, Santiago, on October 18, and around 60 people are
arrested.
Increased requirements for free tuition
More than one and a half million people are said to have participated in an
unofficial referendum, organized by the teachers' union, on the education
system. Nearly 89 percent are reported to have voted in favor of introducing,
among other things, free education at all levels and to re-state the schools.
September
August
Continued student protests
The student protests against President Piñera and the government continue
with at least 70,000 participants. Police deploy tear gas against violent
protesters. Over 270 people are arrested and many injured. An important
requirement of the protesters is that the higher education must be free of
charge. Students are supported by unions and teachers.
July
Renovation in the government
In the wake of mining protests earlier this month, President Piñera is
conducting a major government reform and is replacing, among other things, the
finance, energy, justice and education ministers.
Miners strike and protests
The miners in the state mining giant Codelco carry out their first general
strike in 18 years. It happens on the 40th anniversary of President Salvador
Allende's nationalization of the copper industry. The strike takes place in
parallel with student protests against university reforms and protests against
the construction of a huge hydroelectric dam, Hidro Aysén, in Patagonia.
May
Strike in protests against the government
Trade unions in the city of Valparaíso are organizing a strike in protest
against government policy on issues related to environment, education and labor
market issues.
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