Chile’s economy grew by 4% year-on-year in Q4 2024, surpassing forecasts. The mining sector expanded by 7.3%, and the non-mining sector grew by 3.7%. Domestic demand rebounded to 4.3%, driven by household spending and investment. Quarterly growth was 0.4%, and the economy overall grew by 2.6% in 2024, primarily due to strong exports.
In the last quarter of 2024, Chile’s economy expanded by 4% year-on-year, representing its most substantial growth since the second quarter of 2022. This growth slightly surpassed market expectations of 3.7%, following a previously revised 2% increase in the third quarter.
The mining sector demonstrated remarkable resilience with a growth rate of 7.3%, considerably higher than the 4.6% recorded in the prior quarter. Conversely, the non-mining sector also showed improvement, rising to 3.7% from the previous 1.9%.
Domestic demand showed notable recovery, surging to 4.3%, up from a contraction of -0.2%. Contributing factors included a 2% increase in household spending and a strong investment recovery at 3.3%. However, public expenditure experienced a decline of -1.8%.
On the trade front, both exports and imports saw acceleration, with exports growing by 9.2% compared to 7.3% previously, and imports increasing by 10.2% from 1.2%.
Quarter-over-quarter, Chile’s GDP grew by 0.4%, a decrease from an upwardly revised 1.5% in the third quarter and just below the anticipated 0.5%. Over the entirety of 2024, the economy recorded a growth rate of 2.6%, mainly fueled by strong export performance.
Chile’s economic growth in the last quarter of 2024 reflected a robust recovery in both the mining and non-mining sectors, bolstered by increased domestic demand and strong trade performance. Despite quarterly growth expectations not fully materializing, the annual growth of 2.6% highlights the resilience of the Chilean economy, particularly in exports.
Original Source: www.tradingview.com
