Chile ranks 49th among world economies by size

Chile ranks among the 50 biggest economies in the world, with a nominal GDP of US$ 180 billion this year. By 2014 this amount will increase to US$ 238 billion, very close to countries like Israel and Portugal.

49th world economies
Chile comes in 49th place in the global ranking of economies by size according to The Economist Intelligence Unit (EIU)

With an estimated GDP for 2010 of US$ 180 billion, Chile comes in 49th place in the global ranking of economies by size according to The Economist Intelligence Unit (EIU), a list that considers 177 countries and is led by the United States, followed by China, which has displaced Japan from second place.

Chile comes in sixth place in Latin America, while Brazil is in the best position with a total GDP of US$ 1.8 trillion, followed by Mexico with US$ 952 billion, Argentina, Colombia, and Venezuela.

The study also makes a future projection regarding the performance of the world’s economies. According to specialists’ estimates Chile ought to drop a position by 2014, though it would remain sixth in the region. The drop is explained by the leap that the Eurasian country Kazakhstan is expected make, climbing from 54th to 49th place.

According to the analyst Robert Wood, an EIU professional for the region, “Chile will experience swift growth” between 2010 and 2014, even above the global average, which will allow it to remain in a positive spot in the ranking. The biggest hindrance to making further progress is “the small size of its economy,” it explains.

However, GDP will reportedly grow until it reaches US$ 238 billion, which would locate it only two positions behind from Portugal and Israel.

On a global level the projections note very high rates of growth in China, which will double the size of its economy in 2010-2014, while Japan, which was the second-largest economy up until this year, will fall to third place with practically flat GDP growth. For its part, India will move up three positions, taking over Italy, Russia and Brazil.

With regard to purchasing power parity (PPP), Chile’s 2010 GDP ranks it 47th in the world according to a list by the same institution, with a total of US$ 258 billion. However, in Latin America Chile falls to seventh place in this measurement comparing the size of the economy with purchasing power in different countries, which tends to give less developed countries a higher GDP in PPP, with Peru also being left behind.