Population: 15,980,912 (July 2005 est.)
Capital: Santiago
Languages: Spanish
Religions: Roman Catholic 89%, Protestant 11%, Jewish NEGL%
Government: republic
Climate: temperate; desert in north;
Mediterranean in central region; cool and damp in south
Terrain: low coastal mountains; fertile central valley; rugged Andes
in east
Geography: strategic location relative to sea lanes between Atlantic and Pacific Oceans (Strait of Magellan, Beagle Channel,
Drake Passage); Atacama Desert is one of world's driest regions
Ethnic groups: white and white-Amerindian 95%,
Amerindian 3%, other 2%
Economy: Chile has a market-oriented economy characterized by a high level of
foreign trade. During the early 1990s, Chile's reputation as a role model for economic reform was strengthened when the
democratic government of Patricio AYLWIN - which took over from the military in 1990 - deepened the economic reform initiated
by the military government. Growth in real GDP averaged 8% during 1991-97, but fell to half that level in 1998 because of
tight monetary policies implemented to keep the current account deficit in check and because of lower export earnings - the
latter a product of the global financial crisis. A severe drought exacerbated the recession in 1999, reducing crop yields and
causing hydroelectric shortfalls and electricity rationing, and Chile experienced negative economic growth for the first time
in more than 15 years. Despite the effects of the recession, Chile maintained its reputation for strong financial institutions
and sound policy that have given it the strongest sovereign bond rating in South America. By the end of 1999, exports and
economic activity had begun to recover, and growth rebounded to 4.2% in 2000. Growth fell back to 3.1% in 2001 and 2.1% in
2002, largely due to lackluster global growth and the devaluation of the Argentine peso. Chile's economy began a slow
recovery in 2003, growing 3.2%, and accelerated to 6.1% in 2004-05, while Chile maintained a low rate of inflation. GDP growth
benefited from high copper prices, solid export earnings (particularly forestry, fishing, and mining), and stepped-up foreign
direct investment. Unemployment, however, remains stubbornly high. Chile deepened its longstanding commitment to trade
liberalization with the signing of a free trade agreement with the US, which took effect on 1 January 2004. Chile signed a
free trade agreement with China in November 2005. Record-high copper prices strengthened the peso to a 5 -year high, as of
December 2005, and will boost GDP in 2006.
GDP per capita: purchasing power parity - $11,300 (2005 est.)
GDP real growth: 5.9% (2005 est.)
Unemployment rate: 7.4% (2005 est.)
Internet country code: .cl
Dial code: +56
Prior to the coming of the Spanish in the 16th century,
northern Chile was under Inca rule while Araucanian Indians inhabited central and southern Chile; the latter were not
completely subjugated until the early 1880s. Although Chile declared its independence in 1810, decisive victory over the
Spanish was not achieved until 1818. In the War of the Pacific (1879-84), Chile defeated Peru and Bolivia and won its present
northern lands. A three-year-old Marxist government of Salvador ALLENDE was overthrown in 1973 by a dictatorial military
regime led by Augusto PINOCHET, who ruled until a freely elected president was installed in 1990. Sound economic policies,
maintained consistently since the 1980s, have contributed to steady growth and have helped secure the country's commitment to
democratic and representative government. Chile has increasingly assumed regional and international leadership roles befitting
its status as a stable, democratic nation.