The Economy of Chile is a market economy and high-income economy

as ranked by the World Bank.

Chile is the world’s leading producer of copper, and growth in GDP is
driven by exports of minerals, wood, fruit, seafood, and wine.
Chile’s economic growth had turned negative in the pandemic years but
was one of the fastest growth in 2021,driven by consumption and direct
fiscal support .
Chile has a sound legal framework, and private property rights are
generally respected. Market openness to investment and a relatively
efficient regulatory framework have provided a basis for economic
dynamism over past decades.
The competitive financial system facilitates high levels of bank usage
and efficient access to financing. Chile has signed several trade
agreements including FTA with US.

Copper mining has become key in the Chilean economy since late 80’s,
and presently it's copper and lithium market share is over 20%.
The mining sector’s contribution to the GDP was significantly high and
represented over half of the country’s total exports contributing to more
than 12% of the GDP.

Chile has lowered expectations for its 2022 economic growth like most
countries as domestic demand is set to fall. Chile’s inflation has surged
in the past few months.
Its five-year compound annual growth rate was only 0.4 percent
Economic activity contracted for the mining industry and goods
production . On the other hand, growth picked up for services and
commerce.
Our predictions for the economic state in 2023 will be challenging
household consumption because of the rising inflation, tighter financial
conditions, and the withdrawal of extraordinary fiscal measures.
Headline inflation will moderate in 2023, but will remain high due to the
impact on energy prices of the EU oil embargo on Russia.
 Notes 1 Chilean Peso =0.085 Indian Rupee
● Its five-year compound annual growth rate was only 0.4 percent. A five-year trend of gradually
declining economic freedom has continued. With scores depressed by losses in fiscal health and
trade freedom, Chile has recorded a 2.1-point overall loss of economic freedom since 2017 and
has fallen into the lower half of the “Mostly Free” category. Rule of law remains strong, but labor
freedom exhibits weakness.
● The central bank revised its forecast once again to a range of 1.0% to 2.0%, now in line with the
government’s projection.
● price of copper is expected to hit $4.45 per pound in 2022, up from a previous projection of
$4.10,
● Domestic demand, meanwhile, is now seen falling 1.0% in 2022, compared with a previous
estimate of a 2.6% growth.
● A five-year trend of gradually declining economic freedom has continued. With scores depressed
by losses in fiscal health and trade freedom, Chile has recorded a 2.1-point overall loss of
economic freedom since 2017.
● negative in 2020 with the economy contracting by 5.8 percent
● Fueled by a strong fiscal response, Chile’s GDP grew at 11.7 percent in 2021,Growth was driven
by consumption, amid pension fund withdrawals and direct fiscal support of 9 percent of GDP.
● Chile’s world copper market share is 28 percent and lithium production market share is 23
percent. The mining sector’s contribution to the country’s GDP was 11 percent and represented
over half of the country’s total exports and remains a key sector of Chile’s economy.
● In 2020, the mining sector in Chile accounted for approximately 12.5 percent of the country's
gross domestic product (GDP). This is the highest contribution recorded in the country since
2012. Mining exports from Chile added up to more than 37.5 billion U.S. dollars in 2020.
● Chile’s monthly Economic Activity Indicator economic activity index rose by 6.9 percent
year-on-year in April of 2022, easing from a 7.2 percent rise in the previous period and missing
market expectations of a 7.7 percent gain. Economic activity contracted for mining (-9.3 percent
vs -2.4 percent in March), industry (-1 percent vs 3.3 percent), and goods production
(unchanged at -1.2 percent). On the other hand, growth picked up for services (13.2 percent vs
12.2 percent) and commerce (9.9 percent vs 8.6 percent)
● With regard to electricity and fuels, copper mining accounts for 9% nationally and 17% for the
mining industry in general—an example of its indirect contribution to job creation and the
economy.
● The mining industry has also created nearly 400,000 jobs according to 2016 records, nearly half
of them indirect.
● Growth is projected to slow sharply to around 1.4% in 2022 and 0.1% in 2023.
● Over the last several years, Chile has signed FTAs with the European Union, South Korea, New
Zealand, Singapore, Brunei, China, and Japan.
● Chile is strongly committed to free trade and has welcomed large amounts of foreign investment.
Chile has signed free trade agreements (FTAs) with a whole network of countries, including an
FTA with the United States that was signed in 2003 and implemented in January 2004.
● After two years of negotiations, the United States and Chile signed an agreement in June 2003
that will lead to completely duty-free bilateral trade within 12 years. The U.S.-Chile FTA entered
into force 1 January 2004, following approval by the U.S. and Chilean congresses. The FTA has
greatly expanded U.S.-Chilean trade ties, with total bilateral trade jumping by 154% during the
FTA's first three years.
● reached a partial trade agreement with India in 2005 and began negotiations for a full-fledged
FTA with India in 2006. Chile conducted trade negotiations in 2007 with Australia, Malaysia, and
Thailand, as well as with China to expand an existing agreement beyond just trade in goods.
Chile concluded FTA negotiations with Australia and an expanded agreement with China in
2008. The members of the P4 (Chile, Singapore, New Zealand, and Brunei) also plan to
conclude a chapter on finance and investment in 2008.
● 2006 was a record year for Chilean trade. Total trade registered a 31% increase over 2005.
● The state-owned firm CODELCO is the world's largest copper-producing company, with
recorded copper reserves of 200 years. Chile has made an effort to expand nontraditional
exports. The most important non-mineral exports are forestry and wood products, fresh fruit and
processed food, fishmeal and seafood, and wine.
● Tourism in Chile has experienced sustained growth over the last decades. Chile received about
2.25 million foreign visitors in 2006, up to 2.50 million in 2007
● Over the last ten years, people who live in Chile have enjoyed the introduction of new financial
tools such as home equity loans, currency futures and options, factoring, leasing, and debit
cards. The introduction of these new products has also been accompanied by an increased use
of traditional instruments such as loans and credit cards.
● Chile has become one of the main copper producers, with almost 30% of the global annual
copper output.
● In addition to copper, Chile was, in 2019, the world's largest producer of iodine and rhenium,the
second largest producer of lithium and molybdenum, the sixth largest producer of silver, the
seventh largest producer of salt, the eighth largest producer of potash, the thirteenth producer of
sulfur and the thirteenth producer of iron ore[65] in the world.
● Chile's unique geography and climate make it ideal for winegrowing and the country has made
the top ten list of wine producers many times in the last few decades.
● Chile is one of the 5 largest world producers of cherry and cranberry, and one of the 10 largest
world producers of grape, apple, kiwi, peach, plum and hazelnut, focusing on exporting
high-value fruits.
● Export goods 2017
1. copper: 53.6%
2. grapes and other produce: 8.4%
3. chemicals: 5.0%
4. fish and seafood: 4.5%
5. paper and pulp: 3.3%
6. wine: 2.4%
7. lumber: 2.2%
8. gold: 2.1%
● Main export partners 2017
9. China(-) 27.5%
10. United States(+) 14.5%
11. Japan(+) 9.3%
12. South Korea(+) 6.2%
13. Brazil(+) 5.0% (2017)