The Economy in Chile
General Economic Information:
● Chile is considered a very high-income economy.
● Chile’s is seen as #61 most complex economy in the world, and #42 on the scale of the largest economy on the globe.
● Chile is presented as one of South America's most prosperous nations.
● Chile has very steady economic growth, and over the years they have more than halved poverty rates.
● Some general things Chile is known for in the Economic world; Foreign trade, financial stability and sound policy making. A sound policy is: A policy that should typically be based on intentions and should furthermore contribute towards the achievement of goals.
● The current inflation rate in Chile is 4.3.
● Chile has a mixed economy, which in essence means both private and state-owned corporations are present in this country.
● The Monthly wage in Chile is about 320,500 Chilean pesos. The wages have been progressively growing over the years.
● On average a working individual earns 1,870,000 CLP monthly and people on salaries range from 437,000 to 8,340,000 CLP. CLP= Chilean Pesos.
Trading/ Imports + Exports of Chile:
● #1 leading industry in Chile is the services sector with 53.1%
● Some of the major prime exports of Chile are #1 with copper, fruit, fish products, paper, pulp, wine and chemicals.
● Some major imports of the Chilean economy are #1 with machinery at 15.2 billion yearly, chemicals, electrical and telecommunications, petroleum, vehicles and natural gas.
● Copper is Chile’s top export and provides 20% of government revenue.
● Biggest importer of refined copper in the world, closely trailed by the United states.
● #1 leading industry in Chile is the services sector with 53.1%
● Some of the major prime exports of Chile are #1 with copper, fruit, fish products, paper, pulp, wine and chemicals.
● Some major imports of the Chilean economy are #1 with machinery at 15.2 billion yearly, chemicals, electrical and telecommunications, petroleum, vehicles and natural gas.
● Copper is Chile’s top export and provides 20% of government revenue.
● Biggest importer of refined copper in the world, closely trailed by the United states.
Challenges of the Chilean Economy:
● The poverty rate has not decreased much more, it’s been hovering around 29%.
● The foreign direct investment is increasing gradually; however, they are ONLY targeting 4 major groups of gas, mining, water and electricity.
● The gap between the rich and the poor is progressively growing wider overtime.
● The wealthy in Chile earn 60% of the GDP, while the poor only earn 3.3%.
● The graph on the right is Chilean profits over GDP, so wages in Chile.
● “From an economic standpoint, the country faces cyclical and structural challenges, the most pressing being the recovery of its capacity to grow” https://www.bbva.com/en/challenges-facing-chiles-economy/
● Decline in mining investments in Chile recently.
Taxes:
● Chile does NOT tax pensions, retirement benefits or social security.
● The business tax in Chile is 20% of the new profits.
● Chile taxes on worldwide income, but if you are a new resident you will only pay taxes on Chilean income for the first three years, in which it can be extended for an additional three years.
● Non-residents only pay taxes on income rates.
● The poverty rate has not decreased much more, it’s been hovering around 29%.
● The foreign direct investment is increasing gradually; however, they are ONLY targeting 4 major groups of gas, mining, water and electricity.
● The gap between the rich and the poor is progressively growing wider overtime.
● The wealthy in Chile earn 60% of the GDP, while the poor only earn 3.3%.
● The graph on the right is Chilean profits over GDP, so wages in Chile.
● “From an economic standpoint, the country faces cyclical and structural challenges, the most pressing being the recovery of its capacity to grow” https://www.bbva.com/en/challenges-facing-chiles-economy/
● Decline in mining investments in Chile recently.
Taxes:
● Chile does NOT tax pensions, retirement benefits or social security.
● The business tax in Chile is 20% of the new profits.
● Chile taxes on worldwide income, but if you are a new resident you will only pay taxes on Chilean income for the first three years, in which it can be extended for an additional three years.
● Non-residents only pay taxes on income rates.