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Chile

Chile Economy Stats

Overview:

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 account for more than one-fourth of GDP, with commodities making up some three-quarters of total exports. Copper alone provides one-third of government revenue. 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. Since 1999, growth has averaged 4% per year. 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 claims to have more bilateral or regional trade agreements than any other country. It has 57 such agreements (not all of them full free trade agreements), including with the European Union, Mercosur, China, India, South Korea, and Mexico. Over the past seven years, foreign direct investment inflows have quadrupled to some $15 billion in 2010, but FDI had dropped to about $7 billion in 2009 in the face of diminished investment throughout the world. The Chilean government conducts a rule-based countercyclical fiscal policy, accumulating surpluses in sovereign wealth funds during periods of high copper prices and economic growth, and allowing deficit spending only during periods of low copper prices and growth. As of September 2008, those sovereign wealth funds - kept mostly outside the country and separate from Central Bank reserves - amounted to more than $20 billion. Chile used $4 billion from this fund to finance a fiscal stimulus package to fend off recession. In December 2009, the OECD invited Chile to become a full member, after a two year period of compliance with organization mandates, and in May 2010 Chile signed the OECD Convention, becoming the first South American country to join the OECD. The economy started to show signs of a rebound in the fourth quarter of 2009, and GDP grew more than 5% in 2010. Chile achieved this growth despite the magnitude 8.8 earthquake that struck Chile in February 2010, which was one of the top ten strongest earthquakes on record. The earthquake and subsequent tsunamis it generated caused considerable damage near the epicenter, located about 70 miles from Concepcion - and about 200 miles southwest of Santiago. The Chilean Ministry of Finance estimates the total immediate losses were close to 17% of GDP.

Definitions

  • Budget > Revenues: Revenues calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms
  • Budget surplus > + or deficit > -: This entry records the difference between national government revenues and expenditures, expressed as a percent of GDP. A positive (+) number indicates that revenues exceeded expenditures (a budget surplus), while a negative (-) number indicates the reverse (a budget deficit). Normalizing the data, by dividing the budget balance by GDP, enables easy comparisons across countries and indicates whether a national government saves or borrows money. Countries with high budget deficits (relative to their GDPs) generally have more difficulty raising funds to finance expenditures, than those with lower deficits.
  • Currency > Least valued currency unit > Exchange rate to 1 US dollar: Exchange rate of some of the least valued currencies in the world with regards to the US Dollars, as of Jan 23, 2011.
  • Debt > Government debt > Public debt, share of GDP: Public debt as % of GDP (CIA).

    No date was available from the Wikipedia article, so we used the date of retrieval.

  • Exports: This entry provides the total US dollar amount of merchandise exports on an f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
  • Exports per capita: This entry provides the total US dollar amount of merchandise exports on an f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms. Figures expressed per capita for the same year.
  • Fiscal year: The beginning and ending months for a country's accounting period of 12 months, which often is the calendar year but which may begin in any month. All yearly references are for the calendar year (CY) unless indicated as a noncalendar fiscal year (FY).
  • GDP: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used.
  • GDP > Per capita: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller. Per capita figures expressed per 1 population.
  • GDP > Per capita > PPP: This entry shows GDP on a purchasing power parity basis divided by population as of 1 July for the same year.
  • GDP per capita: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used. Figures expressed per capita for the same year.
  • Gross National Income: GNI, Atlas method (current US$). GNI (formerly GNP) is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and prop).
  • Population below poverty line: National estimates of the percentage of the population lying below the poverty line are based on surveys of sub-groups, with the results weighted by the number of people in each group. Definitions of poverty vary considerably among nations. For example, rich nations generally employ more generous standards of poverty than poor nations.
  • Public debt: This entry records the cumulatiive total of all government borrowings less repayments that are denominated in a country's home currency. Public debt should not be confused with external debt, which reflects the foreign currency liabilities of both the private and public sector and must be financed out of foreign exchange earnings.
  • Unemployment rate: This entry contains the percent of the labor force that is without jobs. Substantial underemployment might be noted.
STAT AMOUNT DATE RANK HISTORY
Budget > Revenues $58.81 billion 2013 47th out of 223
Budget surplus > + or deficit > - 0.5% of GDP 2012 30th out of 182
Currency > Least valued currency unit > Exchange rate to 1 US dollar 467.71 2011 11th out of 17
Debt > Government debt > Public debt, share of GDP 10.1 CIA 2014 141st out of 153
Exports $78.28 billion 2012 45th out of 189
Exports per capita $4,482.15 2012 55th out of 189
Fiscal year calendar year 2013
GDP $268.19 billion 2012 35th out of 177
GDP > Per capita $14,295.59 per capita 2007 58th out of 183
GDP > Per capita > PPP $18,200.00 2012 51st out of 188
GDP per capita $15,355.89 2012 41st out of 177
Gross National Income $70.62 billion 2001 38th out of 158
Population below poverty line 18.2% 2009 12th out of 16
Public debt 11.9% of GDP 2012 138th out of 149
Unemployment rate 6.3% 2012 69th out of 112

SOURCES: CIA World Factbooks 18 December 2003 to 28 March 2011; CIA World Factbooks 2010, 2011, 2012, 2013; Xe Currency Converter; Wikipedia: List of countries by public debt (List) (Public debt , The World Factbook , United States Central Intelligence Agency , accessed on March 21, 2013.); CIA World Factbooks 2010, 2011, 2012, 2013. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.; All CIA World Factbooks 18 December 2003 to 18 December 2008; World Bank national accounts data, and OECD National Accounts data files.; CIA World Factbook 2010, 2011, 2012, 2013; World Bank national accounts data, and OECD National Accounts data files. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.; CIA World Factbooks 18 December 2003 to 28 March 2011

Citation

"Chile Economy Stats", NationMaster. Retrieved from http://www.nationmaster.com/country-info/profiles/Chile/Economy

NationMaster

Chile Economy Profiles (Subcategories)

Adjusted savings 3 Labor force 3
Aid 5 Long-term debt 4
Balance of payments 34 Market capitalization of listed companies 4
Bank and trade-related lending 4 Merchandise 4
Budget 15 Merchandise imports 4
Changes in net 4 Micro 4
Commercial service 4 National accounts 104
Commercial service imports 4 Natural gas 8
Companies 37 Net capital account 4
Currency 14 Net current transfers 4
Current account balance 5 Net current transfers from abroad 6
Current transfers 4 Net errors and omissions 4
Debt 58 Net financial flows 24
Economic aid 3 Net income 4
Electricity 8 Net income from abroad 6
Entrepreneurship 12 Net incurrence of liabilities 3
Exports 3 Net trade in goods 4
External balance on goods and services 7 Net trade in goods and services 4
External debt 215 Official development assistance and official aid 4
Final 20 Oil 10
Financial sector 35 Portfolio investment 12
Foreign aid 43 Poverty 18
Foreign direct investment 10 Poverty and inequality 10
GDP 42 Private investment 3
GDP growth 3 Private nonguaranteed debt 4
GDP per capita 4 Public and publicly guaranteed debt service 6
GNI 12 Public and publicly guaranteed (PPG) debt 3
Gold 4 Purchasing power parity 11
Goods 4 Reserves 6
Goods imports 4 Retail 3
Government 13 Royalty and license fees 8
Government debt 6 Savings 42
Government spending 5 Service 4
Gross capital formation 10 Service imports 4
Gross domestic savings 5 Services 10
Gross fixed capital formation 10 Spending 73
Gross national expenditure 9 Stock of direct foreign investment 6
Gross savings 6 Stocks traded 5
Gross value added at factor cost 9 Tax 68
High-technology 4 Total 9
Household final 23 Total debt service 6
IBRD loans and IDA credits 4 Tourism 21
Income 24 Tourism expenditures 5
Income distribution 4 Tourism receipts 5
Income payments 4 Tourist arrivals by region of origin 8
Income receipts 4 Trade 1596
Inequality 8 Trademark applications 3
Inflation 10 Transnational corporations 4
Innovation 37 Use of IMF credit 4
Interest payments 3 Welfare 5
International tourism 14
  • Chile ranked first for GDP > real growth rate amongst High income OECD countries in 2012.
  • Chile ranked second for GDP per capita amongst Emerging markets in 2012.
  • Chile ranked second for tax > GDP per capita > constant LCU amongst Christian countries in 2012.
  • Chile ranked first for economic freedom amongst Catholic countries in 2013.
  • Chile ranked second for GDP > per capita > PPP amongst Former Spanish colonies in 2012.
  • Chile ranked #4 for GDP > composition by sector > industry amongst Latin America and Caribbean in 2012.
  • Chile ranked first for tax > GDP > constant LCU amongst Cold countries in 2012.

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Hi Leanne - Chile's main products are primary products - food groups and minerals, which is why primary products as a percentage of its exports is as much as 81%. Chile's main exports are copper, fish, fruits, paper and pulp, and it ranked 47th as an exporting country (in terms of f.o.b. value), exports accounting for 32% of its GDP in 2000 and close to 35% in 2001.

Chile's labor force was a total of almost 6 million in 2000, equal to a little under 38% of the total population. The major occupation of its labor force is in services, with only 14% in agriculture and 27% in industry. This would imply that a large section of the labor force is well educated, a fact borne out by its relatively high ranking for average years of schooling, which stands at 7.5 years for the current adult population, and the 9 years of compulsory education mandated more recently. Enrolment for secondary education is also very high, as is overall literacy. Chile ranks 40th in enrolment for higher or tertiary education.

Chile produces some unique pepper varieties. It is also famous for its wines. Chile ranks 3rd for the its quantity of marine fish catch. It has had some major successes in innovation of pepper and tobacco varieties. To encourage research in other areas of technological innovation, Chile has instituted a system known as the National System of Innovation, which is currently focused mainly on applied sciences.

Posted on 25 Apr 2005

Suchita Vemuri, Staff Editor

Suchita Vemuri, Staff Editor