Economic Growth in Chile: Evidence, Sources and Prospects

Abstract

This paper reviews the Chilean experience of growth, with particular focus on the rapid growth that began in the mid-1980s, as the economy recovered from the crisis of 1982. This process slowed down in the late nineties. This paper also reviews the evidence on growth and decomposes the rate of growth and the level of output into its components. It discusses the strengths and weaknesses that explain Chile’s growth take-off and that support future growth. Finally, the paper reviews estimates of the potential rate of long-run growth for the Chilean economy