Chile’s economy grew by 4% year-on-year in Q4 2024, surpassing forecasts. The mining sector expanded by 7.3%, while the non-mining sector grew by 3.7%. Domestic demand rebounded, and both exports and imports accelerated, although public expenditure fell. Overall, the economy grew by 2.6% in 2024, primarily driven by strong export performance.
In the last quarter of 2024, Chile’s economy showed a notable expansion of 4% year-on-year, representing the most robust growth since Q2 2022. This increase follows a downwardly revised growth of 2% in the third quarter, slightly surpassing the market projection of 3.7%.
The mining sector exhibited impressive growth at 7.3%, significantly outpacing the 4.6% rise recorded in Q3. In contrast, the non-mining sector also demonstrated positive performance with a growth rate of 3.7%, an improvement from the prior 1.9%.
Domestic demand saw a notable recovery, climbing to 4.3% from a decline of 0.2%, driven by a 2% rise in household spending when compared to 1% previously, and a recovery in investment at 3.3%, up from -0.8%. However, public expenditure experienced a decline of -1.8%, down from 6.7%.
Both exports and imports recorded acceleration, with exports rising by 9.2% compared to 7.3% in the previous quarter, while imports surged to 10.2%, up from 1.2%. On a quarterly basis, GDP increased by 0.4%, a decrease from the upwardly revised 1.5% in Q3, and slightly below the expected growth of 0.5%.
Overall, for the entire year of 2024, Chile’s economy expanded by 2.6%, with strong export performance playing a significant role in this growth.
In conclusion, Chile’s economy experienced a significant year-on-year growth of 4% in Q4 2024, bolstered by a robust mining sector and a rebound in domestic demand. Despite a slight decline in quarterly growth, the overall economic outlook for the year remains positive, largely due to increased export activity. This growth trajectory indicates a recovery phase following previous downturns in the market.
Original Source: www.tradingview.com
