New York, Philadelphia, San Francisco, and San Juan (Puerto Rico) FAX:
[1] (202) 887-5579 telephone: [1] (202) 785-1746

Diplomatic representation from the US: chief of mission: Ambassador
(vacant); Charge d'Affaires Philip S. GOLDBERG embassy: Avenida Andres
Bello 2800, Las Condes, Santiago mailing address: APO AA 34033 telephone:
[56] (2) 232-2600 FAX: [56] (2) 330-3710

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 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 5.4% in 2000. Unemployment remains stubbornly
high, however, putting pressure on President LAGOS to improve living
standards. The Argentine financial meltdown has put pressure on the
Chilean peso and is slowing the country's economic growth. Meanwhile,
Chile and the US are conducting negotiations for a free trade agreement.

GDP: purchasing power parity - $153 billion (2001 est.)

GDP - real growth rate: 3.1% (2001 est.)

GDP - per capita: purchasing power parity - $10,000 (2001 est.)

GDP - composition by sector: agriculture: 8% industry: 38% services: 54%
(2000)

Population below poverty line: 22% (1998 est.)

Household income or cons