ECONOMY
Chile's economy is based on its rich mineral resources, on agriculture, which takes advantage of the wide variety of climatic conditions, on its rich fishing grounds, and on industry. There have been, however, much instability in the value of the most important minerals (copper, iron, nitrate) mined in Chile and their contribution to the GNP and to the country's exports. These depend largely on demand and prices in the world market and on Chile's ability to compete with other mineral-producing countries. The exploitation of Chile's mineral resources is to large extent in the hands of foreign, mainly U.S., companies. Mining plays a dominant role in central Chile. Forestry, fishing, and mining are important in the south.
The fluctuation in the extend and value of the production of minerals has prompted the development of industry and agriculture, especially for export.
The annual GNP per capita was $1,510 in 1988. It has only risen by $100 since 1978. Economic growth over recent years has been, on the average, 4 to 5 percent annually. Inflation has been one of the lowest in Latin America.
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