This week I wanted to do something different. I remember that, in my Economic Policy course, at the end of my undergraduate studies, our professor, Master Joseph Ramos, asked us a simple question: How much is Chile's GDP? We, students who had gone through the most complex econometrics courses, through the whole Macro line brought by Oscar Landerretche from MIT, done more than 20 assistantships and been among the youngest research assistants in the whole department, had no idea. "Come on, it can be in pesos or dollars," Joe insisted. No one, no one raised their hand. Economics students from the most prestigious school of economics in the country, they didn't know how much Chile's annual GDP was.
Obviously, I can only speak for myself and the classmates with whom we shared the room at the time. The question, of course, intentionally sought the effect it provoked in the classroom: embarrassment. It was an unconventional, but effective, way to introduce orders of magnitude, the first topic we would see in the course. I will never forget that day, since, as a teacher, I have now made it a point to make sure that my students are clear on at least the most basic figures of the national economy, so that, when they enter a debate, they have something clear about what they are talking about. Especially if they are seeking the prime ministership. That is why, in the following lines, I will list the figures that I believe the reader must know in order to understand a little of what we are talking about.
Macro
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GDP of Chile (annual, 2020): US$253,693 million
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GDP per capita: (2020): US$13,038
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GDP per capita (at purchasing power parity, 2020): US$23,363
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External debt (total, 2020): US$208,980.
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Government debt (total, 2020): US$82,352.
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Exchange rate (pesos per dollar, September 2021 average): $783.63
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Unidad de Fomento (average October 2021): $30,214.61
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Monetary Policy Rate (October 2021): 2.75%.
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Central Bank inflation target (annual variation of CPI, two-year): 3.0%.
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Inflation (annual variation of CPI, September 2021): 5.3%.
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Unemployment (percentage of labor force, September 2021): 8.5%.
Public Sector and Taxes
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Public Sector Budget for 2022 (Draft Bill): US$82,135 million
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Total expenses Senators (annual, including salary, allowances and parliamentary work expenses, Budget Bill 2022): US$52.1 million
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Total expenses of Deputies (annual, including salary, allowances and parliamentary work expenses, Budget Bill 2022): US$91.6 million
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Allocations for former presidents of the Republic (annual, includes salary, transfers and offices, Budget Bill 2022): US$1.1 million
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Income Tax Collection (projected 2022): US$23,472 million
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VAT collection (projected 2022): US$27,644 million
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Collection of specific fuel tax (projected 2022): US$2,595 million
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Exceptional government measures to support families and companies due to the covid crisis (2021): US$32.4 billion
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Individuals subject to income tax (2020, based on 2019 income): 10,437,149
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Individuals located in the income tax exempt bracket (average monthly income below $670 thousand, 2020, based on 2019 income): 7,749,288
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Individuals subject to paying a marginal income tax rate of 13.5% or more (2020, based on 2019 income): 426,029
Pensions
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Pension fund withdrawals (total, as of October 8, 2021): US$47,791 million
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Total amount managed by AFPs (total, September 2021): US$174,280
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Average pension paid (monthly, including all forms and government contributions, September 2021): $257,556
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Self-financed average old-age pension paid (monthly, including all pension plans plus solidarity pension contribution, August 2021): $327,279
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Self-financed average old-age pension paid for those who contributed between 35 and 40 years of age (monthly, includes all modes plus solidarity pension contribution, August 2021): $593,909
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Average income of employed people (monthly, 2020): $635 thousand
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Median income of employed persons (monthly, 2020): $420 thousand
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Average income of employed people with tertiary education (monthly, 2020): $977,000
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Average income of employed persons with secondary education (monthly, 2020): $421,000
I am probably missing several figures useful for understanding the current debate, but I believe I have covered a broad spectrum of topics. If there are any that need to be and I haven't incorporated them, please write to me to do so. That way, the next time I debate, no one will catch it.
Nathan Pincheira
Chief Economist of Fynsa
