The Chilean Economy. Detailed description of the modern economy Chile briefly

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The Chilean Economy. Detailed description of the modern economy Chile briefly

Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. Exports of goods and services account for approximately one-third of GDP, with commodities making up some three-quarters of total exports. Copper alone provides 19% of government revenue. From 2003 through 2013, real growth averaged almost 5% per year, despite the slight contraction in 2009 that resulted from the global financial crisis. Growth slowed to 4.2% in 2014. Chile deepened its longstanding commitment to trade liberalization with the signing of a free trade agreement with the US, which took effect on 1 January 2004. Chile has 22 trade agreements covering 60 countries including agreements with the European Union, Mercosur, China, India, South Korea, and Mexico. Chile has joined the United States and 10 other countries in negotiating the Trans-Pacific Partnership trade agreement. The Chilean Government has generally followed a countercyclical fiscal policy, accumulating surpluses in sovereign wealth funds during periods of high copper prices and economic growth, and generally allowing deficit spending only during periods of low copper prices and growth. As of 31 December 2012, those sovereign wealth funds - kept mostly outside the country and separate from Central Bank reserves - amounted to more than $20.9 billion. Chile used these funds to finance fiscal stimulus packages during the 2009 economic downturn. In May 2010 Chile signed the OECD Convention, becoming the first South American country to join the OECD. In 2014, President Michelle BACHELET introduced tax reforms aimed at delivering her campaign promise to fight inequality and to provide access to education and health care. The reforms are expected to generate additional tax revenues equal to 3% of Chile’s GDP, mostly by increasing corporate tax rates to OECD averages.

GDP (purchasing power parity):

$410.3 billion (2014 est.)

$402.2 billion (2013 est.)

$386.2 billion (2012 est.)

note: data are in 2014 US dollars

country comparison to the world: 44

GDP (official exchange rate):

$264.1 billion (2014 est.)

GDP - real growth rate:

2% (2014 est.)

4.2% (2013 est.)

5.5% (2012 est.)

country comparison to the world: 151

GDP - per capita (PPP):

$23,200 (2014 est.)

$22,900 (2013 est.)

$22,200 (2012 est.)

note: data are in 2013 US dollars

country comparison to the world: 76

Gross national saving:

20.4% of GDP (2014 est.)

20.6% of GDP (2013 est.)

21.6% of GDP (2012 est.)

country comparison to the world: 78

GDP - composition, by end use:

household consumption: 65.4%

government consumption: 13.1%

investment in fixed capital: 22.1%

investment in inventories: 0.2%

exports of goods and services: 34.1%

imports of goods and services: -35%

(2014 est.)

GDP - composition, by sector of origin:

agriculture: 3.5%

industry: 35.5%

services: 61.1% (2014 est.)

Agriculture - products:

grapes, apples, pears, onions, wheat, corn, oats, peaches, garlic, asparagus, beans; beef, poultry, wool; fish; timber

Industries:

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

Industrial production growth rate:

2.5% (2014 est.)

country comparison to the world: 114

Labor force:

8.514 million (2014 est.)

country comparison to the world: 58

Labor force - by occupation:

agriculture: 13.2%

industry: 23%

services: 63.9% (2005)

Unemployment rate:

6.5% (2014 est.)

6% (2013 est.)

country comparison to the world: 68

Population below poverty line:

15.1% (2009 est.)

Household income or consumption by percentage share:

lowest 10%: 1.5%

highest 10%: 42.8% (2009 est.)

Distribution of family income - Gini index:

52.1 (2009)

57.1 (2000)

country comparison to the world: 14

Budget:

revenues: $50.67 billion

expenditures: $56.32 billion (2014 est.)

Taxes and other revenues:

19.2% of GDP (2014 est.)

country comparison to the world: 172

Budget surplus (+) or deficit (-):

-2.1% of GDP (2014 est.)

country comparison to the world: 87

Public debt:

16.5% of GDP (2014 est.)

12.8% of GDP (2013 est.)

country comparison to the world: 144

Fiscal year:

calendar year

Inflation rate (consumer prices):

4.3% (2014 est.)

1.9% (2013 est.)

Central bank discount rate:

3.12% (31 December 2010)

0.5% (31 December 2009)

country comparison to the world: 105

Commercial bank prime lending rate:

8.1% (31 December 2014 est.)

9.26% (31 December 2013 est.)

country comparison to the world: 115

Stock of narrow money:

$40.1 billion (31 December 2014 est.)

$42.22 billion (31 December 2013 est.)

country comparison to the world: 57

Stock of broad money:

$154.4 billion (31 December 2014 est.)

$158 billion (31 December 2013 est.)

country comparison to the world: 46

Stock of domestic credit:

$201.6 billion (31 December 2014 est.)

$206.2 billion (31 December 2013 est.)

country comparison to the world: 43

Market value of publicly traded shares:

$313.3 billion (31 December 2012 est.)

$270.3 billion (31 December 2011)

$341.6 billion (31 December 2010 est.)

country comparison to the world: 28

Current account balance:

-$3.805 billion (2014 est.)

-$9.485 billion (2013 est.)

country comparison to the world: 161

Exports:

$76.98 billion (2014 est.)

$76.68 billion (2013 est.)

country comparison to the world: 48

Exports - commodities:

copper, fruit, fish products, paper and pulp, chemicals, wine

Exports - partners:

China 24.9%, US 12.8%, Japan 9.9%, Brazil 5.8%, South Korea 5.5% (2013)

Imports:

$70.67 billion (2014 est.)

$74.57 billion (2013 est.)

country comparison to the world: 43

Imports - commodities:

petroleum and petroleum products, chemicals, electrical and telecommunications equipment, industrial machinery, vehicles, natural gas

Imports - partners:

US 20.3%, China 19.7%, Brazil 6.5%, Argentina 5%, Germany 4% (2013)

Reserves of foreign exchange and gold:

$41.99 billion (31 December 2014 est.)

$41.09 billion (31 December 2013 est.)

country comparison to the world: 46

Debt - external:

$140 billion (31 December 2014 est.)

$130.9 billion (31 December 2013 est.)

country comparison to the world: 42

Stock of direct foreign investment - at home:

$204 billion (31 December 2014 est.)

$185 billion (31 December 2013 est.)

country comparison to the world: 29

Stock of direct foreign investment - abroad:

$87.97 billion (31 December 2014 est.)

$76.83 billion (31 December 2013 est.)

country comparison to the world: 32

Exchange rates:

Chilean pesos (CLP) per US dollar -

568 (2014 est.)

495.31 (2013 est.)

486.49 (2012 est.)

483.67 (2011 est.)

510.25 (2010 est.)