CHILE COUNTRY PROFILE

 

Location: Southern South America, bordering the South Pacific Ocean, between Argentina and Peru.

 

GDP - per capita 2010 est. (PPP): $15,400
(higher GDP in the Region: Argentina $14.700, Mexico $13.900, Brazil $10.800, Colombia $9.800)

 

Capital: Santiago (population 6.7 millions, time difference: UTC-4)

 

Languages: Spanish (official).

 

Background: Sound economic policies, maintained consistently since the 1980s, have contributed to steady growth, reduced poverty rates by over half, and have helped secure the country's commitment to democratic and representative government. Chile has increasingly assumed regional and international leadership roles befitting its status as a stable, democratic nation.

 

Economy - overview: 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 account for more than one-fourth of GDP, with commodities making up some three-quarters of total exports. Copper alone provides one-third of government revenue.

 

During the early 1990s, Chile's reputation as a role model for economic reform was strengthened when the democratic government of Patricio AYLWIN - which took over from the military in 1990 - deepened the economic reform initiated by the military government. Since 1999, growth has averaged 4% per year.

 

 

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 claims to have more bilateral or regional trade agreements than any other country. It has 57 such agreements (not all of them full free trade agreements), including with the European Union, Mercosur, China, India, South Korea, and Mexico.

 

The Chilean government conducts a rule-based countercyclical fiscal policy, accumulating surpluses in sovereign wealth funds during periods of high copper prices and economic growth, and allowing deficit spending only during periods of low copper prices and growth. As of September 2008, those sovereign wealth funds - kept mostly outside the country and separate from Central Bank reserves - amounted to more than $20 billion. Chile used $4 billion from this fund to finance a fiscal stimulus package to fend off recession.

 

In December 2009, the OECD invited Chile to become a full member, after a two year period of compliance with organization mandates, and in May 2010 Chile signed the OECD Convention, becoming the first South American country to join the OECD. The economy started to show signs of a rebound in the fourth quarter of 2009, and GDP grew more than 5% in 2010. Chile achieved this growth despite the magnitude 8.8 earthquake that struck Chile in February 2010, which was one of the top ten strongest earthquakes on record.

 

 

In recent years, due to the strong growth and stability of the Chilean economy, many multinational companies have chosen Santiago as the place for their headquarters in the region, such as HP, Reuters, Procter & Gamble, Intel, Coca-Cola, Unilever, Nestlé, Kodak, IBM, Motorola, Microsoft, Ford, and Yahoo!, and many Chilean companies have established international operations, demanding high level professionals, English language skills, and establishing education abroad as an important matter for their future.

 

 

Inflation rate (consumer prices): 4% (2011 est.; 2010: 1.7%; 2009: -1.4%)

 

Exchange rates: Chilean pesos (CLP) per US dollar (sep 2011): 490

 

Exports – commodities: copper, fruit, fish products, paper and pulp, chemicals, wine, wood, fresh fruit

 

Exports – partners : China 23.8%, Japan 10.2%, US 10.0%, Brazil 6.0%, South Korea 5.9% (2010)

 

Telephones - mobile cellular: 16.5 million (2009)

 

Internet users: 7.0 million (2009)   
               
Electricity: 220v, 50 Hz

 

Population: 16,888,760 (2011 est.)

 

Urban population: 89% (2010)

 

Age structure:
0-14 years: 22.3%
15-64 years: 68.1%
65 years and over: 9.6% (2011 est.)

 

Median age:
Total: 32.1 years
male: 31.1 years
female: 33.1 years (2011 est.)

 

Ethnic groups: white and white-Amerindian 95.4%, Mapuche 4%, other indigenous groups 0.6% (2002 census)

 

Religions: Roman Catholic 70%, Evangelical 15.1%, Jehovah's Witness 1.1%, other Christian 1%, other 4.6%, none 8.3% (2002 census)

Education: Education in Chile is divided in preschool (age up to 5), primary school (age 5 to 13), secondary school (age 14 to 18), and technical or higher education (university).

Literacy: 96% (age 15 and over can read and write)

 

Climate: temperate; desert in north; Mediterranean in central region; cool and damp in south.

 

March weather: Southern Hemisphere/ Northern Hemisphere, March is equivalent to September (Santiago: High temperature: 27º C. Low Temperature: 10º C)