So when their economies tumble Chile cannot stay clear. Even so, the country has, by most accounts, kept its economic house in order. Among other things, Chile changed its USD pegged exchange mechanism and adopted a floating rate, reduced imports tariff restrictions and invested abroad in anticipation of problems rather than in response to them. And, the country has continued to maintain a tight enough fiscal house to make it a net investor, rather than debtor, abroad. But regardless of its economic prowess, the country has hit some hard times as well.
Chile is South America's largest per capita exporter to Asia.
Chile exports more to Japan and China than Argentina. And Chile, a fraction of the size of Brazil, sends almost as much to Asia as the largest country in South America. So when the Asian economies tumbled like dominoes in 1998, Chile was swept up in the maelstrom. Then to add insult to injury, as a huge exporter of commodities, like fish, wine, copper and forestry products, the economy was hammered by the decrease in commodity prices. But, as with the economy as a whole, the country has looked to hit bottom.