Prior to the arrival of the Spanish in the 16th century, the Inca ruled northern Chile while an indigenous people, the Mapuche, inhabited central and southern Chile. Although Chile declared its independence in 1810, it did not achieve decisive victory over the Spanish until 1818. In the War of the Pacific (1879-83), Chile defeated Peru and Bolivia to win its present northern regions. In the 1880s, the Chilean central government gained control over the central and southern regions inhabited by the Mapuche. After a series of elected governments, the three-year-old Marxist government of Salvador ALLENDE was overthrown in 1973 by a military coup led by General Augusto PINOCHET, who ruled until a democratically-elected president was inaugurated in 1990. Sound economic policies, maintained consistently since the 1980s, contributed to steady growth, reduced poverty rates by over half, and helped secure the country's commitment to democratic and representative government. Chile has increasingly assumed regional and international leadership roles befitting its status as a stable, democratic nation.
Southern South America, bordering the South Pacific Ocean, between Argentina and Peru
copper, timber, iron ore, nitrates, precious metals, molybdenum, hydropower
Distribuição da População
90% of the population is located in the middle third of the country around the capital of Santiago; the far north (anchored by the Atacama Desert) and the extreme south are relatively underpopulated
Spanish 99.5% (official), English 10.2%, indigenous 1% (includes Mapudungun, Aymara, Quechua, Rapa Nui), other 2.3%, unspecified 0.2%
SANTIAGO (capital) 6.507 million; Valparaiso 907,000; Concepcion 816,000 (2015)
- Designação longa convencional
- Republic of Chile
- Forma longa local
- Republica de Chile
- Forma curto local
- Coordenadas Geográficas
- 33 27 S, 70 40 W
- Fuso horário
- UTC-3 (2 hours ahead of Washington, DC, during Standard Time)
- Horário de verão
- +1hr, begins second Sunday in August; ends second Sunday in May; note - Punta Arenas observes DST throughout the year
has not submitted an ICJ jurisdiction declaration; accepts ICCt jurisdiction
Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. Exports of goods and services account for approximately one-third of GDP, with commodities making up some 60% of total exports. Copper is Chile’s top export and provides 20% of government revenue.
- Acções de dívida externa
- US$ 96.244.880.000
- Taxa de imposto total (% dos lucros empresa)
- Taxa de juro real
- Produção, valor acrescentado (% PIB)
- Saldo Corrente
- US$ -3.574.377.981
- Força de trabalho, total
- Emprego na Agricultura
- Emprego na Industria
- Emprego nos Serviços
- Taxa de Desemprego
- Importação de Produtos e Serviços
- US$ 68.237.444.820
- Exportação de Produtos e Serviços
- US$ 70.313.591.472
- Total Comércio de Mercadorias
- IDE, entradas líquidas
- US$ 12.225.431.089
- Exportações de serviços comerciais
- US$ 188.8.131.522
grapes, apples, pears, onions, wheat, corn, oats, peaches, garlic, asparagus, beans; beef, poultry, wool; fish; timber
copper, lithium, other minerals, foodstuffs, fish processing, iron and steel, wood and wood products, transport equipment, cement, textiles
- copper, fruit, fish products, paper and pulp, chemicals, wine
- China 26.3%, US 13.2%, Japan 8.5%, South Korea 6.5%, Brazil 4.9% (2015)
- petroleum and petroleum products, chemicals, electrical and telecommunications equipment, industrial machinery, vehicles, natural gas
- China 23.4%, US 18.8%, Brazil 7.8%, Argentina 4% (2015)
- Índice de Risco do País
- Changes in generally good but somewhat volatile political and economic environment can affect corporate payment behavior. A basically secure business environment can nonetheless give rise to occasional difficulties for companies. Corporate default probability is quite acceptable on average.
- Classificação de Clima de Negócios
- The business environment is good. When available, corporate financial information is reliable. Debt collection is reasonably efficient. Institutions generally perform efficiently. Intercompany transactions usually run smoothly in the relatively stable environment rated A2.
- Mining (leading copper producer), agricultural, fishery, and forestry resources
- Numerous free-trade agreements
- Favorable business climate, political and institutional stability
- International companies operating in distribution, air transport, and paper
- Member of the OECD and the Pacific Alliance
- Open economy, vulnerable to external shocks
- Dependence on copper and the Chinese economy
- Persistent external deficit
- Vulnerability of the road network and electricity grid, and high energy prices
- Exposure to weather and earthquake risks
- Income disparity and poor education system
In 2016, lower production and weak copper prices dampened growth. The country traditionally depends on the primary sector, specifically the extraction of copper, which accounts for almost half the country's exports. This trend is likely to continue in 2017. Exports of copper are nonetheless likely to benefit from the expected rise in prices, but gains will be limited by weak Chinese demand (largest customer). Private business investment in the mining sector is expected to remain weak, unless demand for metals (copper, in particular) rises again, subject to the infrastructure program planned by the new US president being implemented. Investment by public-sector mining companies is likely to decline due to continued government efforts to contain the rise in spending and the priorities granted to non-mining sectors. Household consumption is nonetheless likely to remain dynamic, buoyed by the increase in social spending (housing, healthcare, education subsidies) included in the 2017 budget, despite higher unemployment. The expected fall in inflation is expected to boost household purchasing power and enable the central bank to ease its monetary policy.
In 2016, Chile's public deficit worsened, hit by weak revenues (taxes and duties) from the mining sector, while non-mining tax receipts also declined on the back of the slowdown in activity. Spending remained high, despite the government's efforts, as these were not sufficient to offset the shortfall in revenues. Although President Bachelet has postponed his objective of eliminating the public deficit by 2018, his administration seems determined to cut spending growth over the next few years. The 2017 budget also provides for a 2.7% increase in spending compared with 2016, which is the smallest increase since 2003. The major part of the budget is likely to be devoted to social spending (healthcare, education, security) to the detriment of spending on infrastructure. The government's draft budget also provides for recourse to borrowing, specifically the use of bond issues to finance the deficit in the public accounts in 2017. This will contribute to an increase in the public debt, which will nonetheless remain fairly low.
With regard to the external accounts, Chile's current account deficit is expected to remain stable. The trade balance is likely to benefit from the expected increase in copper prices, but weak Chinese demand will limit any gains. The rise in the price of imported oil, though modest, will also prevent a faster reduction in the current account deficit. Despite the tourism revenues, trade in services is likely to remain in deficit, while the transfer balance is expected to remain slightly positive, thanks to remittances from expatriate workers which are higher than remittances back home by foreigners working in Chile. Dividend repatriation by foreign companies, particularly in the extractive industries, is expected to continue, but outflows are likely to be lower, because of the drop in profitability of companies in the sector.
The next presidential and parliamentary elections will be held in November 2017. President Michelle Bachelet, previously serving as president from 2006 to 2010, and re-elected in 2013, is not likely to stand again as under Chile's constitution an outgoing president is not allowed to stand. The coalition of right-wing parties (Chile Vamos), which won the 2016 municipal elections is favorite to win, while President Bachelet's left-wing New Majority coalition (Nueva Mayoría) is losing popularity. The administration's reform priorities, including the raising of corporate tax, have hit business confidence, contributing to a fall in investment and activity, already affected by weakness in the mining sector. The corruption scandals surrounding those close to the president and arguments between some of the coalition parties and the cabinet have led to historically low approval ratings for the president.