Chile’s economy grew by 4% year-on-year in Q4 2024, the highest since Q2 2022, surpassing forecasts of 3.7%. Key sectors like mining expanded by 7.3%, while domestic demand also rebounded. Export and import growth accelerated, contributing to an overall annual growth of 2.6% for the year.
Chile’s economy recorded a 4% year-on-year growth in the final quarter of 2024, representing the most robust expansion since the second quarter of 2022. This growth surpassed market expectations of 3.7% following a downwardly revised growth of 2% in the previous quarter.
The mining industry showcased remarkable performance, achieving a 7.3% growth, a significant rise from the 4.6% noted in the third quarter. In addition, the non-mining sector improved as well, growing by 3.7% compared to the previous 1.9%.
Domestic demand also saw a substantial rebound of 4.3%, recovering from a slight decline of 0.2%. This recovery was influenced by a 2% increase in household spending and a 3.3% rise in investment, despite a decrease in public spending of 1.8%.
Trade figures were positive, with exports accelerating to 9.2% growth from 7.3% in the prior quarter, while imports increased by 10.2%, up from 1.2%. On a quarterly basis, GDP growth was 0.4%, a decrease from an upwardly revised 1.5% in Q3 and marginally under the forecasted 0.5%.
Overall, for the full year of 2024, the economy experienced a growth rate of 2.6%, driven primarily by strong export performance throughout the year.
In conclusion, Chile’s economy exhibited notable growth in the fourth quarter of 2024, characterized by a robust performance in both the mining and non-mining sectors. The positive shift in domestic demand, coupled with enhanced trade activities, underpinned the stronger-than-expected growth figures. Despite slight quarterly contractions, the overall annual growth of 2.6% highlights resilience driven by exports, showcasing a recovery trajectory post-pandemic.
Original Source: www.tradingview.com
