US--Ambassador Charles A. GILLESPIE, Jr.; Embassy at Codina Building,
1343 Agustinas, Santiago (mailing address is APO Miami 34033);
telephone p56o (2) 710133 or 710190, 710326, 710375

Flag: two equal horizontal bands of white (top) and red; there is a blue
square the same height as the white band at the hoist-side end of the white
band; the square bears a white five-pointed star in the center; design was based
on the US flag

- Economy
Overview: In 1989 the economy grew at the rate of 9.9%, reflecting
substantial growth in industry, agriculture, and construction. Copper
accounts for nearly 50% of export revenues; Chile's economic well-being
thus remains highly dependent on international copper prices. Unemployment
and inflation rates have declined from their peaks in 1982 to 5.3% and
21.4%, respectively, in 1989. The major long-term economic problem is
how to sustain growth in the face of political uncertainties.

GDP: $25.3 billion, per capita $1,970; real growth rate 9.9% (1989)

Inflation rate (consumer prices): 21.4% (1989)

Unemployment rate: 5.3% (1989)

Budget: revenues $4.9 billion; expenditures $5.1 billion,
including capital expenditures of $0.6 billion (1986)

Exports: $7.0 billion (f.o.b., 1988);
commodities--copper 48%, industrial products 33%, molybdenum, iron ore,
wood pulp, fishmeal, fruits;
partners--EC 34%, US 22%, Japan 10%, Brazil 7%

Imports: $4.7 billion (f.o.b., 1988);
commodities--petroleum, wheat, capital goods, spare parts, raw materials;
partners--EC 23%, US 20%, Japan 10%, Brazil 9%

External debt: $16.3 billion (December 1989)

Industrial production: growth rate 7.4% (1989)

Electricity: 4,044,000 kW capacity; 17,710 million kWh produced,
1,380 kWh per capita (1989)

Industries: copper, other minerals, foodstuffs, fish processing, iron
and steel, wood and wood products

Agriculture: accounts for about 8% of GDP (including fishing and
forestry); major exporter of fruit, fish, and timber products; major
crops--wheat, corn, grapes, beans, sugar beets, potatoes, deciduous fruit;
livestock products--beef, poultry, wool; self-sufficient in most foods;
1986 fish catch of 5.6 million metric tons net agricultural importer

Aid: US commitments, including Ex-Im (FY70-88), $521 million; Western
(non-US) countries, ODA and OOF bilateral commitments (1970-87), $1.3 billion;
Communist countries (1970-88), $386 million

Currency: Chilean peso (plural--pesos);
1 Chilean peso (Ch$) = 1