band; the square bears a white
five-pointed star in the center; design was based on the US flag

@Chile:Economy

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 the period
1991-1997, but fell to half that level in 1998 because of tight
monetary policies implemented to keep the current account deficit in
check and 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
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 a return to strong
growth in 2000 is likely. The inauguration of Ricardo LAGOS in March
2000, succeeding Eduardo FREI, will keep the presidency in the hands
of the center-left Concertacion coalition that has held office since
the return of civilian rule in 1990.

GDP: purchasing power parity - $185.1 billion (1999 est.)

GDP - real growth rate: -1% (1999 est.)

GDP - per capita: purchasing power parity - $12,400 (1999 est.)

GDP - composition by sector:
agriculture: 6%
industry: 33%
services: 61% (1999)

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

Household income or consumption by percentage share:
lowest 10%: 1.2%
highest 10%: 41.3% (1998)

Inflation rate (consumer prices): 3.4% (1999 est.)

Labor force: 5.8 million (1999 est.)

Labor force - by occupation: agriculture 14%, industry 27%, services
59% (1997 est.)

Unemployment rate: 9% (1999)

Budget:
revenues: $17 billion
expenditures: $17 billion, including capital expenditures of $NA (1998
est.)

Industries: copper, other minerals, foodstuffs, fish processing, iron
and steel, wood and wood products, transport equipment, cement,
textiles

Industrial production growth rate: -1.3% (1999 est.)

Electricity - production: 37.49 billion