The impact of exports on growth in Chile

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The impact of exports on growth in Chile

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Dynamic export growth has been a distinctive feature of the Chilean economy over the last quarter of a century.This strong performance,however,has been accompanied by only modest average growth in GDP.Whilst export volumes rose by 10%a year between 1974 and 2001,GDP growth was only 4.3%.Furthermore,whereas export growth was steady, GDP fluctuated greatly,with several episodes of 8%to 10% growth but also deep recessions of 14%or 15%.Here we shall look at the similarities and differences among three episodes (1973-1982,1983-1989 and 1990-1999);,analyse the interrelationship among export quality,the macroeconomic environment and overall growth in Chile, and touch on some challenges for the future.

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