About Chile & Key Financial Statistics

About Chile and Key Financial Statistics

Overview of Economy:

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.

% Agricuture: 3.3

% Industry: 35.1

% Services: 61.5

Composition of Labor Force by Occupation:

% Agriculture: 13.2

% Industry: 23

% Services: 63.9

Per Capita Income:

$23,100 (2014 est.)

$22,600 (2013 est.)

$21,700 (2012 est.)

Exports:

$75.68 billion (2014 est.)

$76.48 billion (2013 est.)

Key Export Commodities:

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

Export Partners:

China 24.4%, US 12.3%, Japan 10%, South Korea 6.2%, Brazil 5.4% (2014)

Imports:

$67.91 billion (2014 est.)

$74.66 billion (2013 est.)

Key Import Commodities:

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

Import Partners:

China 20.9%, US 19.8%, Brazil 7.9%, Argentina 4% (2014)

Inflation Rate (Consumer Price Index):

4.4% (2014 est.)

1.9% (2013 est.)

Exchange Rate to USD:

Chilean pesos (CLP) per US dollar -

570.37 (2014 est.)

570.37 (2013 est.)

486.49 (2012 est.)

483.67 (2011 est.)

510.25 (2010 est.)

Unemployment Rate:

6.3% (2014 est.)

6% (2013 est.)

S&P Rating:

Standard & Poor's Ratings:

• • AAA: The best quality borrowers, reliable and stable

  • AA: Quality borrowers, a bit higher risk than AAA

  • A: Economic situation can affect finance

  • BBB: Medium class borrowers, which are satisfactory at the moment

  • BB: More prone to changes in the economy

  • B: Financial situation varies noticeably

  • CCC: An obligor rated currently vulnerable, and is dependent upon favorable business, financial, and economic conditions to meet its financial commitments.

Ref 2012-2014: CIA World Factbook, Wikipedia, PWC, EY, Standard & Poors ratings