The first platform of international trade in Egypt
Register here  |  Forgotten password?

Home > Country profiles > Economic and Political Outline

flag Chile Chile: 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 considered by foreign investors as a role model of economic stability.  However, it did not escape from the international recession, its economy contracted -1.5% in 2009 due to the drop in the price of copper (the country is the world's largest producer and exporter of copper).  The revival was quick and energetic in 2010 (5%), stimulated by the dynamism of commercial trade, the increase on domestic demand and the important re-launch plan established (its realization was possible thanks to the sovereign wealth and stabilization funds reserves).  The rhythm of its growth should remain fast in 2011-2012. 

Once the revival began, the government started to eliminate gradually the exceptional measures (mainly monetary) taken during the economic crisis.  Following the violent earthquake that shook the country in February 2010, the government is concentrating its efforts in the rehabilitation and reconstruction, with fiscal measures and adapted expenditures.  The authorities have set up a goal of reducing the structural deficit of the central government to 1% of the GDP from now until 2014.  The objective of the independent central bank of Chile is to keep inflation at around 4%.  In the long term, Chile must improve its productivity and break from its dependence in relation to copper and develop its food production. 

Unemployment rate has increased during the crisis, it reached 9% in 2010.  Even though, Chile has one of the highest GDP per capita in Latin America, poverty affects almost 20% of its population and there is a high level of inequality.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 161.08203.30e243.05e246.51260.27
GDP (Constant Prices, Annual % Change) -1.75.2e6.54.74.5
GDP per Capita (USD) 9,48411,82713,970e13,99914,603
General Government Balance (in % of GDP) -4.4-2.0-1.7e-1.1-1.0
General Government Gross Debt (in % of GDP) 6.29.2e10.510.610.6
Inflation Rate (%) 1.71.5e3.1e3.13.0
Unemployment Rate (% of the Labor Force) 9.68.37.27.27.2
Current Account (billions USD) 2.573.80e0.13-3.63-4.55
Current Account (in % of GDP) 1.61.9e0.1-1.7-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

Chile's economy is dominated by the industrial and the service sectors. These two contribute to almost 95% of the GDP. The main activity sectors in Chile are mining (copper, coal and nitrate), manufactured products (agri-food processing, chemicals, wood) and agriculture (fishing, vineyard, fruits).

The agricultural sector contributes about 4% to the GDP, the industrial sector to more than 40% and the services to more than 50%. About 13% of the population work in the agricultural sector, 23% in the industries and 64% in the services.

The two main challenges in the Chilean economic are: breaking off from its traditional dependence on the price of copper (copper's production represents 50% of the country's exports, the collapse in its price during the financial crisis had a strong effect in Chile's economy) and developing the production of a self-sufficient food supply.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 11.2 23.2 65.6
Value Added (in % of GDP) 3.4 42.7 53.9
Value Added (Annual % Change) 0.5 -4.1 -0.4

Source: World Bank - Last Available Data.

 

Find more information about your business sector on our service Market reports.

 
Monetary Indicators 20062007200820092010
Chilean Peso (CLP) - Average Annual Exchange Rate For 1 USD 530.28522.46522.46560.86510.25

Source: World Bank - Last Available Data.

 

Find out all the exchange rates daily on our service Currency converter.

 
Learn more about Market Analysis about Chile on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
77.4/100
Position:
Mostly free
World Rank:
11/179
Regional Rank:
1/26

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

Return to top

Foreign Trade in Figures

Chile has a very open economy which depends highly on international trade.  Foreign trade represents more than three fourths of the country's GDP.  Chile respects the terms of free-trade and has signed free-trade agreements (FTAs) with several important economies, especially with the European Union, the United States, China and South Korea.  Chile's top three customers are China, the United States and Japan. The country mainly exports copper, fruits and fish products. 

Chile's main suppliers are the United States, China, Argentina and Brazil.  Imports involve mainly mineral fuels and oil, machinery, vehicles and electric equipment and electronics. 

Chile's trade balance is structurally positive, a trend that should continue.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 38,40647,16461,91142,42758,241
Exports of Goods (million USD) 58,68067,97266,46553,73569,622
Imports of Services (million USD) 8,2509,73311,3869,35110,985
Exports of Services (million USD) 7,7268,85110,6778,4019,687
Imports of Goods and Services (Annual % Change) 10.614.512.2-14.326.3
Exports of Goods and Services (Annual % Change) 5.17.63.1-5.6-0.3
Imports of Goods and Services (in % of GDP) 30.733.240.930.834.9
Exports of Goods and Services (in % of GDP) 45.847.244.838.734.6
Trade Balance (million USD) 22,78023,9418,52914,11715,855
Trade Balance (Including Service) (million USD) 22,14922,9547,56512,67314,836
Foreign Trade (in % of GDP) 76.580.585.769.569.5

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
China 24.6%
Japan 10.8%
United States 10.0%
Brazil 6.1%
South Korea 5.8%
See More Countries 42.8%
Main Suppliers
(% of Imports)
2010
China 17.6%
United States 17.5%
Argentina 8.4%
Brazil 8.3%
South Korea 6.2%
See More Countries 42.1%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Copper, refined, and copper alloys, unwrought ...Copper, refined, and copper alloys, unwrought (excl. copper alloys of heading 7405) 34.1%
Copper ores and concentratesCopper ores and concentrates 19.5%
Chemical wood pulp, soda or sulphate (excl....Chemical wood pulp, soda or sulphate (excl. dissolving grades) 3.4%
Copper, unrefined; copper anodes for electrolytic...Copper, unrefined; copper anodes for electrolytic refining 3.4%
Wine of fresh grapes, incl. fortified wines; grape...Wine of fresh grapes, incl. fortified wines; grape must, partly fermented and of an actual alcoholic strength of > 0,5% vol or grape must with added alcohol of an actual alcoholic strength of > 0,5% vol 2.2%
See More Products 37.4%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 8.3%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 7.7%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 5.6%
Motor vehicles for the transport of goods, incl....Motor vehicles for the transport of goods, incl. chassis with engine and cab 3.9%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 3.1%
See More Products 71.4%

Source: Comtrade, Last Available Data

 
 

To go further, check out our service Import export flows.

Return to top

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)

Return to top

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: Sebastian Piñera (since March 2010) – (Renovación Nacional - RN)
Next Election Dates
Presidential: December 2013
National Congress (both Senate and Chamber of Deputies): December 2013
 

Indicator of Freedom of the Press

World Rank:
82/179
Evolution:
49 places down compared to 2010

Source: Worldwide Press Freedom Index 2011, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
1/7
Civil Liberties:
1/7

Map of freedom 2010
Source: Freedom House

 

Return to top

Any Comments About This Content? Report It to Us.

 

© Export Entreprises SA, All Rights Reserved.
Last Updates: February 2012

Copyright 2011 © Crédit Agricole Egypt
CA Egypt website  |  Sitemap  |  Terms and Conditions  |  FAQ  |  Contact us  |  Customer Support 19191
Print
Download in PDF format