Skyline in Chile

Chile Economy

Chile economic overview

One of Latin America's wealthiest nations:

Chile's nominal GDP is the fifth largest in Latin America and the third highest in per capita terms, after Puerto Rico and Uruguay. In recent decades, the country has become known for its sound economic management, open-market policies, private-sector-led economic model and favorable business environment.

Free trade promoter:

Chile has dozens of free trade agreements in place. Most notably, it is part of the Pacific Alliance together with Peru, Colombia and Mexico, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Chile also boasts free trade deals with China, the EU and the U.S.

Mining powerhouse:

Chile is by far the world's largest copper producer, accounting for around a quarter of the global total. As such, copper is the country's key export and an important contributor to government revenue. Moreover, Chile is the world's second-largest producer of lithium, a key component of electric batteries. The current government under President Boric has published a national lithium strategy, which aims for the government to play a key role in developing the lithium industry in the coming years. Chile is also an important producer of agricultural produce such as fish, fruit and wine, and the country's vast extension and contrast of climates provide immense potential for renewable energy generation.

Deteriorating recent conditions:

Economic growth slowed from around 6% in 2010–2012 to a mere 2% in 2013–2019. Lower potential for catch-up growth with wealthier nations, lower copper prices, business uncertainty over ex-President Bachelet's statist reforms, and greater political fragmentation weighed on the economy. Moreover, 2019 saw a huge outburst of social unrest, which led to widespread property damage and a process to reform the constitution, which has prolonged business uncertainty. In addition, policymaking has become more populist in recent years, with Congress approving multiple withdrawals from pension funds during the pandemic. The current government under President Boric is struggling to advance its pro-government reform agenda due to stiff parliamentary opposition.

Key challenges:

In addition to political fragmentation and uncertainty over the constitution, Chile suffers from high economic inequality, an overreliance on the mining sector, high crime rates, and conflict with the indigenous Mapuche community in the south of the country.

Chile's economic outlook:

GDP growth is forecast to roughly track the regional average in the coming years, with Chile's time as Latin America's posterchild seemingly well in the past. While strong demand for the country's mineral exports and investment in the renewable energy and green hydrogen sectors will provide support, political gridlock will continue to hold back progress.

Chile's economy in numbers:

Nominal GDP of USD 301 billion in 2022.

GDP per capita of USD 15,163 compared to the global average of USD 10,589.

Average real GDP growth of 2.7% over the last decade.

Share of the region's population
Share of the region's GDP

Economic structure:

In 2021, services accounted for 65% of overall GDP, manufacturing 9%, other industrial activity 23%, and agriculture 3%. Looking at GDP by expenditure, private consumption accounted for 61% of GDP in 2021, government consumption 14%, fixed investment 25%, and net exports 0%.

GDP by economic sector
GDP by type of expenditure

International trade:

In 2021, manufactured products made up 11% of total merchandise exports, mineral fuels 1%, food 20%, ores and metals 62% and agricultural raw materials 5%, with other categories accounting for 1% of the total. In the same period, manufactured products made up 71% of total merchandise imports, mineral fuels 15%, food 11%, ores and metals 2% and agricultural raw materials 1%, with other goods accounting for 0% of the total. Total exports were worth USD 95 billion in 2023, while total imports were USD 79 billion.

Key exports
Key imports
Key export partners
Key import partners

Economic growth:

The economy recorded average annual growth of 2.7% in the decade to 2022. To read more about GDP growth in Chile, go to our dedicated page.

Fiscal policy:

Chile's fiscal deficit averaged 2.5% of GDP in the decade to 2022. Find out more on our dedicated page.

Unemployment:

The unemployment rate averaged 7.4% in the decade to 2022. For more information on Chile's unemployment click here.

Inflation:

Inflation averaged 4.0% in the decade to 2022. Go to our Chile inflation page for extra insight.

Monetary Policy:

Chile's monetary policy rate ended 2022 at 11.25%, up from 5.00% a decade earlier. See our Chile monetary policy page for additional details.

Exchange Rate:

From end-2012 to end-2022 the peso weakened by 43.8% vs the U.S. dollar. For more info on the peso, click here.
Monthly economic activity data suggests that GDP rose 0.1% quarter on quarter in Q4, which, if confirmed, would be below Q3’s 0.3% growth. A sharp fall in mining output is expected to have largely offset solid expansions in manufacturing, wholesale and retail trade, and other services; the latter three subsectors were likely boosted by falling inflation and interest rates. Turning to Q1 2024, our Consensus is for the economy to gain steam as price pressures and financial conditions continue to ease. Available data is fairly encouraging, with business sentiment rising and merchandise exports expanding for the first time in 10 months in January. In politics, the lower house of Congress passed the government’s reform designed to boost pension payouts in late January. However, the reform will likely be watered down or blocked in the Senate, given the right-wing opposition’s majority.
Projections out to 2033.

54 indicators covered including both annual and quarterly frequencies.

Consensus Forecasts based on a panel of 48 expert analysts.

Want to get insight on the economic outlook for Chile in the coming years? FocusEconomics collects projections out to 2033 on 54 economic indicators for Chile from a panel of 48 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Chile economy. To download a sample report on the Chile's economy, click here . To get in touch with our team for more information, fill in the form at the bottom of this page .

Chile Economic Data

2018 2019 2020 2021 2022
Population (million) 18.8 19.1 19.5 19.7 19.8
GDP (USD bn) 295 278 255 316 301
GDP per capita (USD) 15,737 14,565 13,081 16,064 15,163
GDP (CLP bn) 189,435 195,752 201,429 240,371 262,593
Economic Growth (Nominal GDP, ann. var. %) 5.6 3.3 2.9 19.3 9.2
Economic Growth (GDP, ann. var. %) 4.0 0.7 -6.1 11.7 2.4
Domestic Demand (ann. var. %) 5.0 0.9 -9.4 21.7 2.3
Total Consumption (ann. var. %) 3.6 0.7 -6.6 19.3 3.1
Private Consumption (ann. var. %) 3.8 0.7 -7.4 20.8 2.9
Government Consumption (ann. var. %) 3.1 0.6 -3.5 13.8 4.1
Fixed Investment (ann. var. %) 6.5 4.5 -10.8 15.7 2.8
Exports (G&S, ann. var. %) 4.9 -2.5 -0.9 -1.4 1.4
Imports (G&S, ann. var. %) 8.6 -1.7 -12.3 31.8 0.9
Manufacturing Production (ann. var. %) 2.8 0.7 -2.4 4.2 -4.6
Retail Sales (ann. var. %) 3.8 1.2 0.2 27.1 -3.5
Unemployment (% of active population, eop) 7.1 7.1 10.3 7.2 7.9
Unemployment (% of active population, aop) 7.3 7.2 10.6 9.1 7.8
Fiscal Balance (% of GDP) -1.7 -2.9 -7.3 -7.7 1.1
Public Debt (% of GDP) 25.7 28.6 32.3 36.4 37.6
Inflation (CPI, ann. var. %, eop) 2.6 3.0 3.0 7.2 12.8
Inflation (CPI, ann. var. %, aop) 2.4 2.6 3.0 4.5 11.6
Monetary Policy Rate (%, eop) 2.75 1.75 0.50 4.00 11.25
10-Year Bond Yield (%, eop) 4.21 3.14 2.65 5.65 5.32
Exchange Rate (CLP per USD, eop) 694 752 711 852 852
Exchange Rate (CLP per USD, aop) 642 703 791 760 873
Current Account Balance (USD bn) -13.3 -14.5 -5.0 -23.2 -27.1
Current Account Balance (% of GDP) -4.5 -5.2 -1.9 -7.3 -9.0
Merchandise Trade Balance (USD bn) 4.4 3.0 18.9 10.5 3.8
Merchandise Exports (USD bn) 74.8 68.8 74.0 94.8 98.5
Merchandise Imports (USD bn) 70.4 65.8 55.1 84.3 94.7
Merchandise Exports (ann. var. %) 8.6 -8.1 7.6 28.0 4.0
Merchandise Imports (ann. var. %) 14.7 -6.6 -16.2 53.0 12.4
Foreign Direct Investment (USD bn) 13.0 14.4 10.8 13.2 19.8
International Reserves (USD bn) 39.9 40.7 39.2 51.3 39.2
International Reserves (months of imports) 6.8 7.4 8.5 7.3 5.0
External Debt (USD bn) 184 198 208 238 233
External Debt (% of GDP) 62.4 71.3 81.9 75.2 77.6

Q&A:

  1. Is Chile doing well economically?

  2. Chile exhibits a mixed economic performance. It boasts a high income per head relative to other Latin America nations but grapples with issues like high inequality, an overreliance on the primary sector and political instability.

  3. Is Chile financially stable?

  4. Chile is recognized for its financial stability, underpinned by prudent economic management, a well-regulated financial system and modest external debt. However, its heavy reliance on copper exports exposes it to global commodity price fluctuations, and it has contended with high inflation and political instability in recent years.

  5. What is Chile's largest industry?

  6. Chile's largest industry is the services sector, which accounts for over half of GDP and employs nearly 70% of the working population. This sector encompasses a wide range of activities, including retail, finance, tourism, and professional services. That said, mining also plays an important economic role.

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