The Chile Economy in 2026

Chile Economic Overview

Chile has been Latin America's economic success story: the region's highest GDP per capita at $17,876, the strongest institutional framework, and the only South American member of the OECD. The economy is built on copper — Chile produces roughly 25% of the world's copper, and the state mining company Codelco is the largest copper producer on Earth. The Atacama Desert also holds the world's largest lithium reserves, positioning Chile at the center of the battery and EV revolution.

Chile's open-market model — the "Chicago Boys" reforms of the 1970s-80s, later refined with social protections — delivered decades of steady growth and poverty reduction. The country has free trade agreements with over 65 nations, the most extensive FTA network of any country. Its pension system (AFP) was a pioneering private system that has since faced criticism for low payouts, prompting reform debates. Chile's fiscal rule — saving copper windfalls in a sovereign wealth fund — has provided stability through commodity cycles.

Challenges include high inequality (which sparked massive protests in 2019), copper dependence, water scarcity in mining regions, and the need to diversify into higher-value industries. Life expectancy at 81.2 years is the highest in Latin America. Chile's wine, salmon, and fruit exports have diversified the economy beyond mining, and Santiago is emerging as a regional tech hub.