Chile prices also led to Chile’s second

Chile is a market-based economy with a high level of foreign trade and strong financial policies that has resulted with the strongest sovereign bond rating in South America. According to World Bank, Chile has been one of Latin America’s fastest growing economies with a rise on poverty reduction. One-third of the GDP is made up of exports, 60% of these being commodities. Chile’s main exported product is copper and 20% is allotted to government revenue. During the years 2003 to 2013, Chile experienced a real growth rate of an estimated 5% per year. This eventually dropped in 2009 due to the global financial crisis and has resulted to a 1.7% growth rate on 2016. The fall in copper prices also led to Chile’s second year of economic downturn causing high inflation and a currency depreciation. The Chilean government further strengthened their commitment on trade liberalization by signing a free trade agreement with the United States, taking effect on January 1, 2004. Chile has 22 trade agreements across the globe with 60 countries including China, India and Mexico. Chile is also the first country in South America to join the Organisation for Economic Co-operation and Development (OECD), signing the convention on May 2010. Following a countercyclical fiscal policy, Chile has accumulated surplus in sovereign wealth funds, which have totaled into $23.5 billion on October 31, 2016. These funds were then used to provide fiscal stimulus during the time of the global financial crisis. By 2014, President Michelle Bachelet proposed tax reforms as part of her campaign to alleviate poverty through the provision of education and health care. The reforms that included increasing corporate tax rates were expected to garner additional tax revenues equivalent to 3% of the GDP. Chile’s GDP is at a total of $438.3 billion as of 2016 with $24,100 per capita. The labor force has a total number of 8.762 million with 67.1% in services, 23.7% in the industries and 9.2% in agriculture. Chile is dependent on the production of grapes, apples, pears, onions, wheat, corn, oats, peaches, garlic, asparagus, beans, beef, wool, fish and timber. Its major industries manufacture copper, lithium, other minerals, fish processing, iron and steel, wood and wood products, transport equipment, cement and textiles. With a total of $60.6 billion on exports as of 2016, their products include copper, fruit, fish products, paper and pulp, chemicals and wine. Chile’s main export partners are China (28.6%), United States (14.1%), Japan (8.6%), South Korea (6.9%), and Brazil (5%). Meanwhile, their import products that include petroleum and petroleum products, chemicals, electrical and telecommunications equipment, industrial machinery, vehicles and natural gas have accumulated a total of $55.34 billion as of 2016. Chile’s main import partners are the countries of China (24.3%), United States (14.7%), Brazil (9.3%), Argentina (4.4%), and France (4.2%).