Jose Sanchez
Research expert covering society, economy, & politics for Latin America
Chile - statistics & facts
Chile is located in South America forming a long narrow strip between the Pacific Ocean to the west and the Andes Mountains to the east. Peru is at its northern tip, Bolivia is located to the northeast, and Argentina forms a predominant border with the country to the east. The Pacific islands Juan Fernandez, Salas y Gomez, Desventuradas, and the Easter Island also belong to Chile. The country is considered to be one of South America’s most stable and prosperous nations; however, in the past few years, economic growth has faltered slightly, mainly due to the country’s dependence on copper production. Another factor is the increasingly uneven wealth distribution throughout the country, which Chile has yet to address.
Chile’s trade balance is quite unstable; it was in the red in several years, it returned to a surplus once again in 2020 and 2021. China and the United States are Chile’s most important trade partners for both imports and exports. Services generate the largest share of the economy, followed by industry, while a small share pertains to agriculture. The distribution of employment by economic sector almost mirrors that of the distribution of GDP, except a larger share of employment comes from the agricultural sector accompanied by a considerable reduction in employment in the industrial sector. GDP per capita was estimated at 16,815 U.S. dollars in 2023 and is expected to increase over the next few years.
Chile's population
The population of Chile is estimated to be around 20 million, as of 2023. Its population growth rate has been increasing over the last few years in spite of a declining fertility rate which is below the replacement level. The country is predominantly urban with almost all of its population living in urban areas, making it one of the most urbanized nations in the world. The largest of Chile’s urban areas in terms of population is Santiago, which is also the country’s capital.Copper dependency
While Chile's economy has been historically strong, GDP decreased slightly between 2014 and 2016, and again in 2020, due to falling growth rates. Around the same time, other economic indicators showed a decline, even if only slightly. Chile produces far more than copper than any other nation, but production faltered a bit in 2016 and 2017. From 2014 through 2016, the inflation rate rose more than usual, and after returning to normal. Price increases reached another high following the global inflation crisis during 2022, nonetheless, the forecast shows lower rates for the next years.Chile’s trade balance is quite unstable; it was in the red in several years, it returned to a surplus once again in 2020 and 2021. China and the United States are Chile’s most important trade partners for both imports and exports. Services generate the largest share of the economy, followed by industry, while a small share pertains to agriculture. The distribution of employment by economic sector almost mirrors that of the distribution of GDP, except a larger share of employment comes from the agricultural sector accompanied by a considerable reduction in employment in the industrial sector. GDP per capita was estimated at 16,815 U.S. dollars in 2023 and is expected to increase over the next few years.
The burden of inequality
Chile was ranked as the Latin American country with the 11th biggest inequality in income based on the Gini index in 2022. In order to remain a stable and prosperous nation, this problem needs to be addressed. Additionally, diversifying its economic base beyond copper could also help stabilize the economy further, even though Chile is the world's largest producer now.
