Economic trends
In 2008, the growth of GDP increased to 3.2%. Chile has the most performing economy in Latin America and it is considered by the foreign investors as a role model of economic stability. After almost 30 years, Chile has tried its best to establish positive economic policies. The country is the world's largest producer and exporter of copper. Its economy depends strongly on the rise and fall of the price of copper on the international market. The objective of the central independent bank of Chile is to keep the inflation level at around 4%.
The global financial crisis has mainly damaged the terms of trade in Chile, as a result of a collapse in the price of copper and creating tougher financial conditions. The investment boom, maintained by the mining and energy industries, has ended abruptly and the loss of confidence from the consumers and enterprises has provoked a decrease in private consumption. After several years of keeping a balance surplus, the current balance has shown a negative figure of -6.5 billions in 2009. In regards of unemployment, its rate has reached 7.8%.
Main branches of industry
Chile's economy is controlled by the industrial and the service sectors. These two contribute to almost 95% of GDP. The main activity sectors in Chile are mining (copper, coal and nitrate), manufactured products (agri-food processing, chemicals, wood) and agriculture (fishing, vineyard, fruits).
The agricultural sector contributes to about 5% of GDP, the industrial sector to 50% and the services to 45%. About 13% of the population work in the agricultural sector, 23% in the industries and 64% in the services.
The two main economic problems in Chile are its traditional dependence on the price of copper (copper's production represents 50% of the country's exports, the collapse of its price during the financial crisis has had a strong effect in Chile's economy) and the development of the production of a self-sufficient food supply.
International trade
Chile's economy is highly dependent on international trade. The share of foreign trade in the country’s GDP is above 65%. Chile is strongly committed to free-trade and has signed free-trade agreements (FTAs) with several important economies, such as the European Union, the USA., China and South Korea. Chile’s top three export partners are: China, the USA and Japan. Exports have represented more than 66 billion USD in 2008. Its main exports were copper, fruits and fish products.
Chile's main import partners are the United States, China, Brazil and Argentina. Its imports represent more than 57 billion USD and involve mainly mineral fuels and oil, machinery, vehicles and electric & electronic equipment.
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