In the 1970s, tariffs were 1000%. The average weighted tariff is now 2%, thanks substantially to Chile's role as a global champion -- together with Mexico -- of free-trade agreements. The country has completed 47, with new deals being negotiated with China, and with a group incorporating New Zealand, Singapore and Brunei. Seventy-five per cent of the economy is traded. The peso is strengthening. Interest rates are at U.S. levels, 2.5 % or so. The result has been steady economic growth, averaging 6.4% through the 1990s and 5.9% last year, including 7.3% in the final quarter. Debt is down to 11% of GDP while the government has produced a 2% budget surplus this year. And the poverty level, 50% in 1988, is about 6% today.

Posted by Ryan S. on Thursday, August 04, 2005 at 1:09 PM | Permalink |