Jose Sanchez
Research expert covering society, economy, & politics for Latin America
Economy of Chile - statistics & facts
Surpassing the social economy ideologies that influenced Chile during the 1970s and resulted in an economic crisis with hyperinflation due to fiscal and monetary regulations, the Chilean miracle emerged. This phenomenon led to the regularization of the GDP, showing a consistent upward trend expected to continue in the coming years. Consequently, Chile's economy now holds the fifth strongest position among Latin American countries, but in terms of GDP per capita, it rises further to the third place, behind Uruguay and Panama. As a result of this expansive growth, the country enjoys a greater economic advancement compared to other continental nations. Nonetheless, the country faces problems regarding inequality and social exclusion. The population seeks social overhauls focusing on expanding social protection programs to counter unemployment and inequality, ultimately leading to a more secure labor market.
International trade
Despite being a part of free trade agreements, such as the commercial protocol of the Pacific Alliance, the economic growth is primarily driven by a new economic model developed after the 1990s. The cornerstone of this growth lies in the expansion of copper exports and significant foreign investments in the mining industry, particularly in the production of this reddish metal. Experts largely attribute the country's economic recovery to this activity, leading to a notable economic reliance on copper. It contributes substantially to the GDP, accounting for a significant part of the country's total exports. The national corporation, Codelco, holds a dominant position in the market, making Chile the leading exporter globally. China stands as the primary trade partner.Inflation and poverty
Although the average monthly income has increased, other aspects are still considered critical problems for the society. The number of people living under poverty conditions increased significantly after the COVID-19 pandemic, nonetheless, in 2022, the number dropped to pre-pandemic levels showing great signs of recovery. The inflation rates have been affecting negatively due to issues with supply chains and scarcity, resulting in the highest interannual inflation rate in 28 years in 2022, the next year the inflation rate remained high. This makes it challenging to maintain a good quality of life, especially considering that Chile is one of the most expensive countries in Latin America to live in, with a high minimum cost of living exceeding the average minimum salary.
