Part 177

Flag description: two equal horizontal bands of white (top) and red; there is a blue square the same height as the white band at the hoist-side end of the white band; the square bears a white five-pointed star in the center; design was based on the US flag

Economy

Economy - overview: Chile has a prosperous, essentially free market economy. Civilian governments - which took over from the military in March 1990 - have continued to reduce the government's role in the economy while shifting the emphasis of public spending 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 and foreign reserves also are strong, as sustained foreign capital inflows - driven in part by state privatizations - have more than offset occasional current account deficits and public debt buybacks. President FREI, who took office in March 1994, has placed improving Chile's education system and developing foreign export markets at the top of his economic agenda. Despite this progress, the Chilean economy remains largely dependent on a few sectors - particularly copper mining, fishing, and forestry. Success in meeting the government's goal of sustained annual economic growth of 5% depends largely on world prices for these commodities, continued foreign investor confidence, and the government's ability to maintain a conservative fiscal stance. In 1996, Chile became an associate 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%, fish and 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%, petroleum 10%, 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

@Chile:Communications

Telephones: 1.5 million (1994 est.)

Telephone system: modern system based on extensive microwave radio relay facilities domestic: extensive microwave radio relay links; domestic satellite system with 3 earth stations international: satellite earth stations - 2 Intelsat (Atlantic Ocean)

Radio broadcast stations: AM 179, FM 614, shortwave 11