Chile’s GDP grew by 4% year-on-year in Q4 2024, outpacing expectations. The mining sector surged by 7.3%, while domestic demand rebounded significantly. Exports and imports saw accelerated growth, though quarterly GDP growth slowed to 0.4%. The overall yearly growth for 2024 was 2.6%, bolstered by strong exports.
Chile’s economy demonstrated notable resilience by expanding 4% year-on-year in the final quarter of 2024, reflecting the strongest growth since the second quarter of 2022. This growth follows a downwardly adjusted increase of 2% in the third quarter and has outstripped market expectations of 3.7%. Notably, the mining sector excelled with a 7.3% growth rate, surpassing the 4.6% recorded in the previous quarter. The non-mining sector also showed promising performance, achieving 3.7% growth compared to only 1.9% previously.
Domestic demand witnessed a robust rebound, registering a 4.3% increase against a slight decline of 0.2% in the prior quarter. This uptick was supported by a 2% rise in household spending, up from 1%, and a recovery in investment which grew by 3.3%, contrasting with the previous downturn of 0.8%. However, public expenditure saw a decline of 1.8%, compared to a growth of 6.7% earlier.
On the trade front, both exports and imports experienced significant acceleration, with exports rising by 9.2% compared to the previous quarter’s 7.3%, and imports increasing by 10.2%, a substantial rise given the previous figure of 1.2%. On a quarterly basis, Chile’s GDP experienced a 0.4% expansion, which is a decrease from an upwardly revised growth of 1.5% in Q3, and slightly below the anticipated 0.5%.
For the entirety of 2024, the Chilean economy recorded an overall growth of 2.6%, a figure attributed to robust export performance, highlighting the importance of external markets in sustaining economic growth for the nation.
In summary, Chile’s economy has shown impressive growth, particularly in the last quarter of 2024, exceeding forecasts and demonstrating recovery in both domestic demand and export performance. The mining sector significantly contributed to this growth, while the rebound in household spending and investment played crucial roles. However, declining public expenditure and mixed quarterly performance warrant continued observation of economic trends in the nation.
Original Source: www.tradingview.com
