Chile´s Economy: The Export of Minerals

Chile’s economy

Overview:

Chile’s economy is based on the export of minerals, which is worth about half of the total export of the country. The most valuable resource is copper, and the country is considered the world’s largest producer. Agriculture provides jobs for about 15% of the population; it accounts for about 6% of the national wealth, but produces less than half of the domestic needs. The country’s primary agricultural area is The Vale of Chile; its vineyards are the basis of Chile’s wine industry. Grapes, apples, onions are among the chief crops. The economy also relies on beef and poultry production, sheep rising is very common, and produces wool and meat for domestic use and for export. Fishing and lumbering also are important; the country also exports chemicals, paper and pulp.

The dependence on copper prices and the production of an adequate food supply are among the major economic problems. Chile’s main imports are petroleum, chemicals, electrical equipment, vehicles, machinery and natural gas. Most of the trade takes place with the United States, Argentina, South Korea, and China.

Augusto Pinochet was a dictator who gained control over Chile in 1973. Although thousands disappeared or got executed under his command, but he brought free market policies and transformed Chile’s economy from bankruptcy to the most prosperous in Latin America.

Economic Progress

After years of impressive economic growth, specifically in 1999, Chile began to experience an economic downturn. These unfavorable economic conditions were related to the Asian crisis that occurred two years earlier. In 2003, the economy began to show signs of recovery, with 3.3% growth in real GDP. In 2004, the GDP nearly doubled to 6.1% growth, and a growth of ...

... middle of paper ...

...s. When the recession hit in 2008, it caused a discouragement in exports, which led Chile to suffer greatly, because they were mostly dependent on exporting. Investments fell and unemployment increased during the great recession as well. There were great losses in that recession; loses that were estimated to be around 30 trillion dollars. The years to come have brought wellness, as the unemployment rate started to decline once again. Some graphs are also included to demonstrate graphically how the economic state was. In 2010, a devastating and destructive earthquake hit Chile, and it brought nothing but loses and ruins. The Chilean government suffered as well as the GDP of the country. Even after these natural disasters and economic unfortunate events, Chile remains on its feet fighting to strive, as it is almost the fastest growing country in Latin America.