2005: An excellent year for Chilean economy

According to the Central Bank, the Chilean economy grew at 6.3 percent in 2005, which is the highest growth rate since 1997, when the gross domestic product increased by 6.6 percent. Thus, Chile’s GDP reached $ 115 billion last year.

The GDP per capita at market exchange rate totaled $7,146 in 2005, while the purchasing power parity (PPP) GDP per capita was $12,000 in the same year.

During the current year, the Chilean economy is expected to continue growing at a rate between 5.25 and 6.25 percent.

The consumer price index in 2005 was 3.7 percent. This figure is within the annual inflation range target set up by the monetary authority, which is between 2 and 4 percent. For 2006, the Central Bank forecasts a consumer price index increase of 2.7 percent.

Total exports in 2005 reached $39.5 billion, which represents an increase of 23.5 percent with regard to the previous year. Total imports rose 31.7 percent last year, reaching $30.3 billion.

The Trade Balance had a surplus of $ 9.2 billion in 2005, which is unprecedented. Copper exports accounted for $16.8 billion representing approximately 42 percent of total Chilean exports. The price of copper averaged $1.67 the pound during 2005, the highest nominal value ever.

Bilateral trade between Chile and the United States reached nearly $11 billion in 2005, the second year since the Chile–US Free Trade Agreement entered into force. This figure represents an increase of 38 percent with respect to bilateral trade in 2004 and 84 percent during the last two years.

Chilean exports to the U.S. totaled $6.3 billion in 2005, increasing 37 percent in relation to the previous year. Total imports from the U.S. rose 40 percent, thus reaching $4.7 billion.

Chile’s trade with the U.S. represents 16 percent of its total foreign trade, being the U.S. the main Chilean commercial partner.

The national average unemployment rate in 2005 was 8.0 percent, which means a decrease regarding the average unemployment rate of 8.8 percent in 2004. This rate has experienced a slow but steadily declining trend during the last years.