Chile’s current account deficit narrowed to $1.78 billion in Q4 2024 from $2.66 billion a year prior, supported by an increase in goods surplus to $4.76 billion. The services gap slightly decreased while the primary income gap widened. Annually, the deficit reduced to $4.85 billion from $10.50 billion in 2023.
Chile’s current account deficit has seen a promising reduction, decreasing to $1.78 billion in the fourth quarter of 2024 from $2.66 billion during the same period in the previous year. This improvement reflects a significant increase in the goods surplus, which rose to $4.76 billion compared to $3.53 billion the previous year, indicating stronger export performance.
Conversely, the services gap experienced a slight contraction, registering at $2.21 billion, down from $2.36 billion. Additionally, the primary income gap widened, reaching $4.28 billion compared to $4.00 billion in the prior year. For the entirety of 2024, Chile’s current account deficit further reduced to $4.85 billion, a notable decline from $10.50 billion in 2023.
In conclusion, Chile’s current account deficit has significantly narrowed in the fourth quarter of 2024, driven by an enhanced goods surplus. Despite a slight reduction in the services gap and an increase in the primary income gap, the overall financial health appears to be improving. The sizeable year-on-year decrease in the annual deficit underscores a positive trend in the country’s economic performance.
Original Source: www.tradingview.com
