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In spite of Chile's proud track record of sound fiscal management, it remains heavily exposed to external shocks. About 40% of the country's export revenues come from copper, which today stands at less than US$ 0.70 per pound, its lowest price in 25 years. Portfolio investment, less regulated than it was in the past, has pulled out of Chile, frightened by Argentina's precarious condition and Chile's weak copper exports. With copper prices 18% lower than forecast this time last year, the Chilean government over-estimated the revenue that state-owned Cedelco could contribute to government coffers and will run a US$ 700 million deficit.