Chile’s economy is projected to grow 3% p.a. over the next few years, driven by increased mining investment and expansionary monetary policy. The mining industry in Chile is currently the main source of economic prosperity, with mining exports producing over one third of the government’s income. However, this means the economy is vulnerable to changes in commodity prices, specifically copper prices. Chile currently operates half of the global top 14 copper mines, and over 50% of the country’s net exports are derived from copper related products.
Chile’s GDP per capita has been positively correlated with the commodity cycle over much of the last decade, rising with commodity prices and falling when commodity prices trended down. Per Capita incomes are currently at US$14,000 and should reach US$16,000 by 2022, double 2005 levels.