|Large flat-rolled stainless steel|
|Kaolin coated paper|
Chile, officially known as the Republic of Chile, is a South American country occupying a long, narrow strip of land between the Andes to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far south. Chilean territory includes the Pacific islands of Juan Fernández, Salas y Gómez, Desventuradas, and Easter Island in Oceania. Chile also claims about 1,250,000 square kilometers (480,000 sq. mi) (480,000 sq. mi) of Antarctica, although all claims are suspended under the Antarctic Treaty. The arid Atacama Desert in northern Chile contains great mineral wealth, principally copper. While Chile's economy has been historically strong, GDP decreased slightly in 2015 and 2016, 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 2011 and 2012. From 2014 through 2016, the inflation rate rose more than usual, but it is projected to return to normal for the foreseeable future.
Over the past 30 years, Chile‘s financial system has undergone significant development, with an increase in the number of participants, the variety of products, and market depth. Chile‘s financial system is now well-developed by emerging market standards, and even by the standards of many OECD members. This applies in particular with regard to the long maturities available in the fixed-income market, which has benefited from the development of the mandatory private pensions scheme.
Whereas Chile implemented several capital market reform packages over the last few years in order to modernize and internationalize its capital markets, these have so far met with only limited success. A third reform package initially proposed by the government in 2008 has recently been relaunched by the government, which hopes to have it adopted during its current term of office. Chile‘s financial sector is compartmentalized, meaning that banks, for example, cannot do equities business or own insurance companies, although all activities can be done by separate companies under a common holding structure. Most financial institutions indeed form parts of conglomerates.
In Chile, financial services are regulated and supervised by different institutions according to the type of financial service. The Superintendence of Banks and Financial Institutions (SBIF) and the Chilean Central Bank are in charge of banking, the Superintendence of Securities and Insurance (SVS) is in charge of securities and insurance, and the Superintendence of Pensions (SP) supervises the pension system and unemployment insurance. The institutional arrangements regarding the resources and independence of some of the Superintendencies have been questioned in the past, although some authorities have recently been strengthened in certain areas. Chile applies strong banking secrecy provisions, but reforms are underway to allow the international exchange of bank information for tax purposes.
|Agriculture||Wheat, oat, garlic, peaches, beans, poultry, asparagus, pears & onions.|
|Manufacture||Copper, minerals, iron, steel, wood products, transportation equipment & textile.|
|Services (Including financial)||61% (2013 estimate)|
|Empresas Falabella||Retail / Financial Services|
|Empresas Copec||Natural Resources and Energy|
|SQM||Chemicals / Major Diversified|
|Banco de Chile||Financial Services|
|Banco Santander||Financial Services|
|Latam Airlines Group||Aviation|
|Empresas CMPC||Forest Industry|
|Large flat-rolled stainless steel|
|Kaolin coated paper|
The Santiago Stock Exchange (SSE) (Spanish: Bolsa de Comercio de Santiago), founded on November 27, 1893, is Chile's dominant stock exchange, and the third largest stock exchange in Latin America, behind Brazil's BM&F Bovespa, and the Bolsa Mexicana de Valores in Mexico. On December 5, 2014, the Santiago Stock Exchange announced it was joining the United Nations Sustainable Stock Exchanges (SSE) initiative, becoming the 17th Partner Exchange of the initiative. The General Stock Price Index (Indice General de Precios de Acciones, or IGPA) is a market capitalization-weighted index that measures price variations of the majority of the exchange's listed stocks, classified by sectors according to its activity and revised annually. The index was developed with a base level of 100 as of December 30, 1980. The Selective Stock Price Index (Indice de Precios Selectivo de Acciones, or IPSA) is composed of the 40 most heavily traded stocks and revised quarterly. The Inter-10 Index is a volume-weighted index of the 10 main Chilean stocks listed in foreign markets through ADRs; its stocks are selected from the IPSA and is revised quarterly. Futures are traded on the IPSA and the U.S. Dollar. The exchange trades in stocks, bonds, investment funds, stock options, futures, gold and silver coins minted by the Banco Central de Chile, and US dollars on Telepregón, its electronic platform. The only floor trading conducted is the share market, concurrent with screen trading. Settlement for shares is T+2. The stock exchange works every day of the week, except weekends and financial holidays.
The Crisis of 1982 was a major economic crisis suffered in Chile. The crisis took place during the time of the Chilean military dictatorship following years of radical neoliberal reforms when but one non-neoliberal measure was enacted in 1979 by fixing the peso's exchange rate. The 1982 crisis was the worst economic crisis in Chile since the 1930s. The GDP of Chile retracted 14.3% and unemployment rose to 23.7%. After the socialist presidency of Salvador Allende (1970—1973), and following the 1973 coup the Chicago boys implemented the neoliberal economic policies outlined in El ladrillo. In 1979 however, Chile decided to depart from the neoliberal principle of free-floating exchange rates, with disastrous results. The lead up to the 1982 crisis can be traced to the overvalue of the Chilean peso (which was helped by the peg of the peso to the United States dollar) and to high-interest rates in Chile. This would have hampered investment in productive activities. In fact in the 1977—1982 period much of the spending in Chile consisted in consuming goods and services. From 1973 to 1982 Chile's external debt rose from 3500 to over 17 billion dollars. In agriculture, the entrance of speculative capital in the pre-crisis period lead to the bankruptcy of several processing companies. IANSA, a sugar company that belonged to the state before privatization, went bankrupt due to a short-term gains policy by its new owners.
In November 1981, two banks were bailed out by the government on the basis of having taken excessive risks, these were large Banco de Talca and Banco Españ ol Chile and the minor banks Banco de Linares and Banco de Fomento de Valparaí so. The financial societies of Compañí a General, Cash, Capitales and Del Sur were also bailed out. Banco de Talca and Banco Españ ol Chile were nationalized removing the management and wresting ownership from shareholders, later these two banks were re-privatized. On January 13, 1983, the government made a massive bank intervention, bailing out five banks and dissolving three others. All sectors of Chilean agriculture except fruit export and forestry contracted during the crisis but recovery was fast after 1984. Farm bankruptcies in Chile were overall high in the 1979-1983 period peaking in 1983. The crisis has been credited of beginning, despite severe repression, a wave of protest all over Chile against the dictatorship. In the years following the crisis, the economic policy of the dictatorship changed to include price bands for some foodstuffs and a floating exchange rate. Supporters of the neoliberal policy of the military dictatorship have argued that the crisis was born outside Chile and hit the whole of Latin America in the so-called La DéCada Perdida (The Lost Decade). Historians Gabriel Salazar and Julio Pinto have countered that this kind of crisis is inherent weaknesses of the neoliberal model. In contrast, economist Milton Friedman blames precisely the departure from the neoliberal model and political intervention which a fixed exchange rate is. According to Ricardo French-Davis, the unnecessary radicalism of the shock therapy in the 1970s caused mass unemployment, purchasing power losses, extreme inequalities in the distribution of income and severe socio-economic damage. He argues that the 1982 crises, as well as the success of the pragmatic economic policy after 1982, proves that the 1973-1981 radical economic policy of the Chicago boys harmed the Chilean economy
Spain conquered and colonized Chile in the mid-16th century, replacing Inca rule in northern and central Chile, but failing to conquer the independent Mapuche that inhabited south-central Chile. After declaring its independence from Spain in 1818, Chile emerged in the 1830s as a relatively stable authoritarian republic. In the 19th century, Chile saw significant economic and territorial growth, ending Mapuche resistance in the 1880s and gaining its current northern territory in the War of the Pacific (1879–83) after defeating Peru and Bolivia. In the late 1960s and early 1970s, the country experienced severe left-right political polarization and turmoil. This development culminated with the 1973 Chilean coup d'état that overthrew Salvador Allende's left-wing government and instituted a 16-year-long right-wing military dictatorship that left more than 3,000 people dead or missing. The regime headed by Augusto Pinochet ended in 1990 after it lost a referendum in 1988 and was succeeded by a Centre-left coalition which ruled through four presidencies until 2010.
Chile is today one of South America's most stable and prosperous nations. It leads Latin American nations in rankings of human development, competitiveness, income per capita, globalization, and state of peace, economic freedom, and low perception of corruption. It also ranks high regionally in sustainability of the state, and democratic development. Chile is a founding member of the United Nations, the Union of South American Nations and the Community of Latin American and Caribbean States. Intermittent warfare continued until 1817. With Carrera in prison in Argentina, O'Higgins and anti-Carrera cohort José de San Martín, hero of the Argentine War of Independence, led an army that crossed the Andes into Chile and defeated the royalists. On 12 February 1818 Chile was proclaimed an independent republic. The political revolt brought little social change, however, and 19th-century Chilean society preserved the essence of the stratified colonial social structure, which was greatly influenced by family politics and the Roman Catholic Church. A strong presidency eventually emerged, but wealthy landowners remained powerful. Chile slowly started to expand its influence and to establish its borders. By the Tantauco Treaty, the archipelago of Chiloé was incorporated in 1826. The economy began to boom due to the discovery of silver ore in Chañarcillo, and the growing trade of the port of Valparaíso, which led to conflict over maritime supremacy in the Pacific with Peru. At the same time, attempts were made to strengthen sovereignty in southern Chile intensifying penetration into Araucanía and colonizing Llanquihue with German immigrants in 1848. Through the founding of Fort Bulnes by the Schooner Ancud under the command of John Williams Wilson, the Magallanes region joined the country in 1843, while the Antofagasta area, at the time part of, Bolivia, began to fill with people.
The peso is the currency of Chile. The current peso has circulated since 1975, with a previous version circulating between 1817 and 1960. Its symbol is defined as a letter S with either one or two vertical bars superimposed prefixing the amount the single-bar symbol, available in most modern text systems, is almost always used. Both of these symbols are used by many currencies, most notably the US dollar, and may be ambiguous without clarification such as CLP$ or US$. The ISO 4217 code for the present peso is CLP. It is officially subdivided into 100 centavos, although there are no current centavo-denominated coins. The exchange rate was around CLP$600 to 1 U.S. dollar at the end of 2014; by August 2015 it fell to 694 per 1 US dollar. The first Chilean peso was introduced in 1817, at a value of 8 Spanish colonial reales. Until 1851, the peso was subdivided into 8 reales, with the escudo worth 2 pesos. In 1835, copper coins denominated in centavos were introduced but it was not until 1851 that the real and escudo denominations ceased to be issued and further issues in centavos and décimos (worth 10 centavos) commenced. Also in 1851, the peso was set equal 5 French francs on the sild, 22.5 grams pure silver. However, gold coins were issued to a different standard to that of France, with 1 peso = 1.37 grams gold (5 francs equaled 1.45 grams gold). In 1885, a gold standard was adopted, pegging the peso to the British pound at a rate of 13? pesos = 1 pound (1 peso = 1 shilling 6 pence). This was reduced in 1926 to 40 pesos = 1 pound (1 peso = 6 pence). From 1925, coins and banknotes were issued denominated in cóndores, worth 10 pesos. The gold standard was suspended in 1932 and the peso's value fell further. The escudo replaced the peso on 1 January 1960 at a rate 1 escudo = 1000 pesos.
Between 1817 and 1851, silver coins were issued in denominations of ¼, ½, 1 and 2 reales and 1 peso (also denominated 8 reales), with gold coins for 1, 2, 4 and 8 escudos. In 1835, copper ½ and 1 centavo coins were issued. Full decimal coinage was introduced between 1851 and 1853, consisting of copper ½ and 1 centavo, silver ½ and 1 décimo, 20 and 50 centavos, and 1 peso, and gold 5 and 10 pesos. In 1860, gold 1 peso coins were introduced, followed by cupro-nickel ½, 1 and 2 centavos between 1870 and 1871. Copper coins for these denominations were reintroduced between 1878 and 1883, with copper 2½ centavos added in 1886. A new gold coinage was introduced in 1895, reflecting the lower gold standard, with coins for 2, 5, 10 and 20 pesos. In 1896, the ½ and 1 décimo were replaced by 5 and 10 centavo coins. In 1907, a short-lived, silver 40 centavo coin was introduced following cessation of production of the 50 centavo coin. In 1919, the last of the copper coins (1 and 2 centavos) were issued. The following year, cu pro-nickel replaced silver in the 5, 10 and 20 centavo coins. A final gold coinage was introduced in 1926, in denominations of 20, 50 and 100 pesos. In 1927, silver 2 and 5 peso coins were issued. Cu pro-nickel 1 peso coins were introduced in 1933, replacing the last of the silver coins. In 1942, copper 20 and 50 centavos and 1 peso coins were introduced. The last coins of the first peso were issued between 1954 and 1959. These were aluminum 1, 5 and 10 pesos. In 1975, coins were introduced in denominations of 1, 5, 10, and 50 centavos and 1 peso. The 1-, 5-, and 10-centavo coins were very similar to the 10-, 50-, and 100-escudo coins they replaced. Since 1983, inflation has left the centavo coins obsolete. Five- and 10-peso coins were introduced in 1976, followed by 50- and 100-peso coins in 1981 and by a 500-peso coin in 2000. Coins currently in circulation are in denominations of 1, 5, 10, 50, 100, and 500 pesos; however, as of 2016 the value of the peso has depreciated enough that most retailers and others tend to use prices that are multiples of 10 pesos, ignoring smaller amounts. The 1 peso coin is rare.
The first Chilean paper money was issued between 1840 and 1844 by the treasury of the Province of Valdivia, in denominations of 4 and 8 reales. In the 1870s, a number of private banks began issuing paper money, including the Banco Agrícola, the Banco de la Alianza, the Banco de Concepción, the Banco Consolidado de Chile, the Banco de A. Edwards y Cía., the Banco de Escobar, Ossa y Cía., the Banco Mobiliario, the Banco Nacional de Chile, the Banco del Pobre, the Banco Sud Americano, the Banco del Sur, the Banco de la Unión and the Banco de Valparaíso. Others followed in the 1880s and 1890s. Denominations included 1, 2, 5, 10, 20, 50, 100 and 500 pesos. One bank, the Banco de A. Edwards y Cía. Also issued notes denominated in pounds sterling (libra ester Lina). In 1881, the government issued paper money convertible into silver or gold, in denominations of 1, 2, 5, 10, 20, 50, 100 and 1000 pesos. 50 centavo notes were added in 1891 and 500 pesos in 1912. In 1898, provisional issues were made by the government, consisting of private bank notes overprinted with the words "Emisión Fiscal". This marked the end of the production of private paper money. In 1925, the Banco Central de Chile began issuing notes. The first, in denominations of 5, 10, 50, 100 and 1000 pesos, were overprints on government notes. In 1927, notes marked as "Billete Provisional" were issued in denominations of 5, 10, 50, 100, 500 and 1000 pesos. Regular were introduced between 1931 and 1933, in denominations of 1, 5, 10, 20, 50, 100, 500, 1000, 5000 and 10,000 pesos. The 1 and 20 peso notes stopped production in 1943 and 1947, respectively. The remaining denominations continued production until 1959, with a 50,000 peso note added in 1958. In 1976, banknotes were introduced in denominations of 5, 10, 50, and 100 pesos with the reverses of the three lowest denominations resembling those of the Eº 5,000, 10,000, and 50,000 notes they replaced. Inflation has since led to the issue of much higher denominations. Five-hundred-peso notes were introduced in May 1977, followed by thousand-peso (in June 1978), 5,000-peso (June 1981), 10,000-peso (June 1989), 2,000-peso (December 1997), and 20,000-peso (December 1998) notes. The 5-, 10-, 50-, 100-, and 500-peso banknotes have been replaced by coins, leaving only the 1,000-, 2,000-, 5,000-, 10,000-, and 20,000-peso notes in circulation. Redesigned versions of the four highest denominations were emitted in 2009 and 2010. The popular new 1,000-peso banknote was issued on 11 May 2011.
|National Song||"Himno Nacional de Chile"|
|Currency||Chilean peso (CLP)|
|GDP / GDP Rank||438.752 Billion USD|
|GDP Growth Rate||2.1 Percent|
|GDP Per Captial||$24112.937 (PPP)|
UTC−06:00 — Easter Island
UTC−04:00 — main territory
UTC−03:00 — Magallanes and Chilean Antarctica
< 1.0% Muslims
< 1.0% Hindus
< 1.0% Buddhists
< 1.0% Jews
< 1.0% Other Religions
White And White-Amerindian 95.4%
Other Indigenous Groups 0.6%
President – Sebastián Piñera
|Website||Go to the web|
|Public Debt||21.177 Percent|
|Unemployment Rate||6.566 Percent|
|Labor Force (Occupation)||-|