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 representing a guide to progress and honor; blue symbolizes
the sky, white is for the snow-covered Andes, and red stands for the
blood spilled to achieve independence; design was influenced by the
US flag
Economy Chile
Economy - overview:
Chile has a market-oriented economy characterized by a high level
of foreign trade. 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. Growth in real GDP averaged 8% during 1991-97, but fell
to half that level in 1998 because of tight monetary policies
implemented to keep the current account deficit in check and because
of lower export earnings - the latter a product of the global
financial crisis. A severe drought exacerbated the recession in
1999, reducing crop yields and causing hydroelectric shortfalls and
electricity rationing, and Chile experienced negative economic
growth for the first time in more than 15 years. Despite the effects
of the recession, Chile maintained its reputation for strong
financial institutions and sound policy that have given it the
strongest sovereign bond rating in South America. By the end of
1999, exports and economic activity had begun to recover, and growth
rebounded to 4.2% in 2000. Growth fell back to 3.1% in 2001 and 2.1%
in 2002, largely due to lackluster global growth and the devaluation
of the Argentine peso. Chile's economy began a slow recovery in
2003, growing 3.2%, and accelerated to about 5% per year in 2004-06,
while Chile maintained a low rate of inflation. GDP growth benefited
from high copper prices, solid export earnings (particularly
forestry, fishing, and mining), and stepped-up foreign direct
investment. Unemployment has exhibited a downward trend over the
past year, but remains fairly high. 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
signed a free trade agreement with China in November 2005, and it
already has several trade deals signed with other nations and blocs,
including the European Union, Mercosur, South Korea, and Mexico.
Record-high copper prices helped to strengthen the peso to a 6 1/2-year
high, as of December 2006, and added investment in the mining sector
will boost GDP in 2007.
GDP (purchasing power parity):
$203 billion (2006 est.)
GDP (official exchange rate):
$100.3 billion (2006 est.)
GDP - real growth rate:
4.8% (2006 est.)
GDP - per capita (PPP):
$12,600 (2006 est.)
GDP - composition by sector: agriculture: 5.9% industry: 49.3% services: 44.7% (2006 est.)
Labor force: 6.94 million (2006 est.)
Labor force - by occupation: agriculture: 13.6% industry: 23.4% services: 63% (2003)