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.)