Chile: Staff Report for the 2001 Article IV Consultation

Chile's economic performance was very strong during most of the 1990s, but the country suffered a recession in 1998–99. In early 1998, Chile faced a widening external current account deficit—resulting from surging domestic demand and a large drop in copper export prices—which together with turbulence in world financial markets weakened investor confidence and put downward pressure on the currency. Chile has maintained a very open trade regime and has continued with the unilateral phased reduction of its uniform external tariff rate.