|
hanns - Chile |
General Culture Human Resources Economics Trade Politics |
Economic Analysis
Chile experienced a moderate recession in 1999 brought on by the global economic slowdown. The economy began to recover in 2000 with 5.4% growth, but slowed to 3.0% in 2001. In 2003, the Chilean economy showed clear signs of recovery, reaching a 3.3% growth in real GDP.
Bringing down Inflation: CPI increase year-end |
|||||||||
1993 |
1994 |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
12.2 |
8.9 |
8.2 |
6.6 |
6.0 |
4.7 |
2.3 |
4.5 |
2.6 |
2,8 |
Source: National Statistics Institute of Chile |
|||||||||
Chile has been privatizing businesses since 1973. The goal is to reduce state provision of services, increase efficiency, and allow individual choice with a focus on infrastructure provision and trade liberalization.
Chile is strongly committed to free trade and has welcomed large amounts of foreign investment. The country has strengthened its longstanding commitment to trade liberalization with the signing of a free trade agreement with the US, which took effect on January 1, 2004. Chile has also signed a free trade agreement with China in November 2005.
Dissolving Borders: Chilean exports and imports 1992-2002 (US$ Millions) |
||||||
|
1992 |
1993 |
1994 |
1995 |
1996 |
1997 |
Exports |
10,007 |
9,199 |
11,604 |
16,024 |
15,395 |
17,017 |
Imports |
9,285 |
10,189 |
10,872 |
14,643 |
16,810 |
18,111 |
|
1998 |
1999 |
2000 |
2001 |
2002 |
|
Exports |
14,754 |
15,915 |
18,153 |
17,611 |
17,430 |
|
Imports |
17,087 |
14,022 |
16,832 |
16,160 |
15.445 |
|
Source: Central Bank of Chile |
||||||
Chile`s main success has been its export industry. The country has entered in successive partnerships with a range of countries, especially in South America. During the nineties, it has signed FTA`s with Canada, Mexico, and Central America. It has also concluded preferential trade agreements with Venezuela, Colombia, and Ecuador. It signed an association agreement with Mercosul, which includes Argentina, Brasil, Paraguay, and Uruguay. Being a member of the APEC (Asia-Pacific Economic Cooperation), Chile is seeking to increase commercial ties to Asian Markets.
Chilean Main Economic Indicators |
|||||||
|
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
Nominal GDP (US$bn)* |
67.9 |
73.0 |
73.4 |
67.6 |
70.1 |
63.0 |
66,0 |
Nominal GDP Per Capita (US$)* |
4,712 |
4,993 |
4,950 |
4,504 |
4,608 |
4,090 |
4,262 |
GDP (Billions of 1996 Pesos) |
31,237 |
33,301 |
34,377 |
34,041 |
35,533 |
36,533 |
37,411 |
Real GDP Growth Rate (Percent based on 1986 Pesos) |
6.6 |
3.2 |
-0,8 |
4.2 |
3,1 |
2,1 |
|
Unemployment (Percent) |
6.5 |
6.1 |
6.3 |
9.8 |
9.2 |
9.1 |
9,0 |
CPI Inflation, year-end (Percent) |
6.6 |
6.0 |
4.7 |
2.3 |
4.5 |
2.6 |
2,8 |
Exports (FOB) (US$ Millions) |
15,395 |
17,017 |
14,754 |
15,915 |
18,153 |
17,611 |
17,430 |
Imports (CIF) |
16,810 |
18,112 |
17,087 |
14,022 |
16,832 |
16,160 |
15,445 |
Foreign Debt (US$ Millions)** |
22,979 |
26,701 |
31,691 |
34,112 |
36,477 |
38,032 |
40,395 |
Source: Central Bank of Chile, National Statistics Institute for inflation; * Average exchange rate 2002; **At end of period |
|||||||
Economic Data