Chile Economy 1997

Economy - overview Chile has a prosperous, essentially free market economy. Civilian governments- which took over from the military in March 1990 - have continued to reducethe government's role in the economy while shifting the emphasis of publicspending toward social programs. Growth in real GDP averaged more than 6.5%in 1991-1996, and inflation is nearing a 40-year low. Chile's currency andforeign reserves also are strong, as sustained foreign capital inflows - drivenin part by state privatizations - have more than offset occasional currentaccount deficits and public debt buybacks. President FREI, who took officein March 1994, has placed improving Chile's education system and developingforeign export markets at the top of his economic agenda. Despite this progress,the Chilean economy remains largely dependent on a few sectors - particularlycopper mining, fishing, and forestry. Success in meeting the government'sgoal of sustained annual economic growth of 5% depends largely on world pricesfor these commodities, continued foreign investor confidence, and the government'sability to maintain a conservative fiscal stance. In 1996, Chile became anassociate member of Mercosur and concluded a Free Trade Agreement with Canada.

GDP purchasing power parity - $120.6 billion (1996 est.)

GDP - real growth rate 6.5% (1996 est.)

GDP - per capita purchasing power parity - $8,400 (1996 est.)

GDP - composition by sector
agriculture : 8%
industry: 33%
services: 59% (1995 est.)

Inflation rate - consumer price index 6.7% (1996 est.)

Labor force
total: 5.5 million (1996 est.)
by occupation: services 38.3% (includes government 12%), industry and commerce 33.8%,agriculture, forestry, and fishing 19.2%, mining 2.3%, construction 6.4% (1990)

Unemployment rate 6.5% (1996 est.)

Budget
revenues: $17 billion
expenditures: $17 billion, including capital expenditures of $NA (1996 est.)

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

Industrial production growth rate 4.8% (1995)

Electricity - capacity 5.964 million kW (1995)

Electricity - production 27.908 billion kWh (1995)

Electricity - consumption per capita 1,662 kWh (1995 est.)

Agriculture - products wheat, corn, grapes, beans, sugar beets, potatoes, fruit; beef, poultry,wool; timber; 1991 fish catch of 6.6 million metric tons

Exports
total value: $15.2 billion (f.o.b., 1996 est.)
commodities: copper 37%, other metals and minerals 8.2%, wood products 7.1%, fishand fishmeal 9.8%, fruits 8.4% (1994)
partners: EU 25%, US 15%, Asia 34%, Latin America 20% (1995 est.)

Imports
total value : $16.5 billion (f.o.b., 1996 est.)
commodities: capital goods 25.2%, spare parts 24.8%, raw materials 15.4%, petroleum10%, foodstuffs 5.7% (1994)
partners: EU 18%, US 25%, Asia 16%, Latin America 26% (1995 est.)

Debt - external $22.3 billion (1995 est.)

Economic aid
recipient: ODA, $50.3 million (1996 est.)

Currency 1 Chilean peso (Ch$) = 100 centavos

Exchange rates Chilean pesos (Ch$) per US$1 - 423.79 (January 1997), 412.27(1996),396.78 (1995), 420.08 (1994), 404.35 (1993), 362.59 (1992)

Fiscal year calendar year

NOTE: The information regarding Chile on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Chile Economy 1997 information contained here. All suggestions for corrections of any errors about Chile Economy 1997 should be addressed to the CIA.