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So why is Chile bankrupt?
It's not. It actually has one of Latin America's strongest economies.
BBC News - Chile country profile
The country had Latin America's fastest-growing economy in the 1990s and has weathered recent regional economic instability. But it faces the challenges of having to diversify its copper-dependent economy - it is the largest world producer - and of addressing uneven wealth distribution.
Chile's unusual, ribbon-like shape - 4,300 km long and on average 175 km wide - has given it a hugely varied climate.
Chile Economy, Chilean Economic Profile | Economy Watch
Chile has a strong economy, characterized by high volumes of foreign trade and a sound economic policy. Chile’s exports account for 40% of its GDP and have experienced growth of 4% since 1999. Chile has a free trade agreement with the US to liberalize its trade policies. Chile enjoys free trade
agreements with the European Union, Mercosur, China, India, Mexico and South Korea. From 2003 to 2008, FDIs in Chile were worth $17 billion, which dropped to about $7 billion in 2009 due to the global economic crisis. The Chilean government had injected a $4 billion stimulus to counter the recession in 2009, the result of which was felt in Q4 2009, when the economy showed signs of a recovery.
Strong showing of Chilean economy anticipates 5.5% GDP expansion in 2010 — MercoPress
The sharp increase of 7.1% increase caught many analysts by surprise. “The market expected an Imacec of around 6.5%, but personally, I expected 7% due to the low base comparison with respect to last year (-2.7%)” said Universidad Andrés Bello economist Sebastian Mathews.
Finance Minister Felipe Larraín is confident that Chile will meet its growth objective of 5% year-end economic growth, and that it is possible to exceed it. Most analysts now agree that the Central Bank should raise the yearly growth projection to be somewhere between 5.0 and 5.5%.