The Chilean Economy
Lead by a strong drive from the government towards a liberal market economy, transparency and fiscal responsibility, the Chilean Economy has experienced a wide transformation over the last quarter of the 20th century. The opening for trade and investments together with increased institutional stability has given birth to an approved economic model.
While economic efficiency remains first priority, the government is also constantly working on the improvement of the legal and health system as well as promoting equal income opportunities and poverty reduction. The Chileans, in turn, are creating their own economic model with the emphasis on a significant rise of the living standard.
In effect, the annual average GDP per capita has doubled over the last twelve years, reaching US$7.146 in 2005, double as much as the US$ 3.463 that the International Monetary Fund (IMF) registered for the year 1993. The Banco Central de Chile (Chilean National Bank) located the economic growth for the year 2005 around 6,3% and maintained equal expectancies for this year ranging from 5,25 to 6,25. Last year’s figure is the highest since 1997, when the GDP grew 6,6%. As a whole, the GDP reached US$ 115.3 billions.
Another encouraging trend is the steady drop of inflation. In the mid 1990s a rigorous monetary policy managed to overcome a two digit Consumer Price Index. Since then inflation has decreased, equaling more and more the numbers of industrialized economies, amounting for 3,7% in 2005 with an estimated 2,7% for the current year.
The report "Evolución de la actividad económica en 2005", click here, published by the Banco Central on March 23, 2006, referes to the abovementioned issues.
For further information on the Chilean Economy, some more interesting information can be found here.
Source: Banco Central de Chile y Ministerio de Hacienda.
Last updated: March 28, 2006