Country Analysis Chile
Country analysis
Amsterdam, 04-11-2013
GROUP 13
Contents
GDP
The Gross Domestic Product is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period, usually a year. It includes all private and public consumption, government spending, investments and exports minus imports that occur within a country. GDP is used as a measurement of economic growth and shows a country’s economic situation.
The GDP of Chile is reported by the World Bank and, though it fluctuates around the trend, shows a relatively stable growth. The GDP was last recorded at $9447,07 in 2012. From 1987 until 2013 the annual growth rate of Chile averaged 5.5%. The global economic slump had a relatively small effect on the country which resulted in negative economic growth in 2009. After a relatively low growth at the start of 2010 growth has increased to above-average levels, even reaching 9.9% in 2011. Currently growth is below-average with a forecast of 4.4% in 20141. Chile is one of Latin America’s fastest growing economies and has one of the highest GDP per capita, which equals 76% of the world’s average, in the region.
When GDP per capita is adjusted by purchasing power parity (PPP) a constant growth can be seen as above indicating increased economic prosperity on a year-by-year basis, with only a small dip at a time of global economic troubles. Adjusting GDP per capita by PPP is useful to compare differences in living standards between nations as PPP takes the relative cost of living and inflation rate of countries into account, and not just exchange rates that may distort the real differences in income.2
Population Growth
Chile has made a big progress over the last decade in terms of population growth. Since the 1960s, the country has seen a track record of robust growth and poverty reduction.
From 1960 until 2012, Chile Population averaged 12.6 Million reaching an all
Amsterdam, 04-11-2013
GROUP 13
Contents
GDP
The Gross Domestic Product is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period, usually a year. It includes all private and public consumption, government spending, investments and exports minus imports that occur within a country. GDP is used as a measurement of economic growth and shows a country’s economic situation.
The GDP of Chile is reported by the World Bank and, though it fluctuates around the trend, shows a relatively stable growth. The GDP was last recorded at $9447,07 in 2012. From 1987 until 2013 the annual growth rate of Chile averaged 5.5%. The global economic slump had a relatively small effect on the country which resulted in negative economic growth in 2009. After a relatively low growth at the start of 2010 growth has increased to above-average levels, even reaching 9.9% in 2011. Currently growth is below-average with a forecast of 4.4% in 20141. Chile is one of Latin America’s fastest growing economies and has one of the highest GDP per capita, which equals 76% of the world’s average, in the region.
When GDP per capita is adjusted by purchasing power parity (PPP) a constant growth can be seen as above indicating increased economic prosperity on a year-by-year basis, with only a small dip at a time of global economic troubles. Adjusting GDP per capita by PPP is useful to compare differences in living standards between nations as PPP takes the relative cost of living and inflation rate of countries into account, and not just exchange rates that may distort the real differences in income.2
Population Growth
Chile has made a big progress over the last decade in terms of population growth. Since the 1960s, the country has seen a track record of robust growth and poverty reduction.
From 1960 until 2012, Chile Population averaged 12.6 Million reaching an all