Place Credit Reports Chile Order
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Economy Overview:
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.
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