Chile’s GDP grew by 4% year-on-year in Q4 2024, the highest since Q2 2022, surpassing expectations. The mining sector rose by 7.3%, while non-mining increased by 3.7%. Domestic demand rebounded significantly, despite a drop in public spending. For the whole year, GDP increased by 2.6% driven by exports.
In the final quarter of 2024, Chile’s economy demonstrated a robust expansion of 4% year-on-year, marking its most significant growth since the second quarter of 2022. This increase exceeded market predictions of 3.7% and followed a downwardly adjusted 2% rise in the preceding quarter.
The mining sector showed remarkable growth of 7.3%, a considerable improvement from the 4.6% increase seen in the third quarter, while the non-mining sector also reported growth of 3.7%, significantly up from 1.9%.
Domestic demand saw a notable rebound, increasing by 4.3% compared to a decline of 0.2% in the previous quarter. This was supported by a 2% rise in household spending and a 3.3% recovery in investment, even as public expenditure experienced a decline of 1.8%.
Additionally, exports and imports both demonstrated accelerated growth rates of 9.2% and 10.2% respectively, compared to 7.3% and 1.2% in the prior quarter.
Although the quarterly GDP growth registered at 0.4%, this was a decrease from an upwardly revised 1.5% in Q3 and slightly below the anticipated 0.5%. For the entirety of 2024, Chile’s economy grew by 2.6%, primarily bolstered by strong export performance.
In summary, Chile’s economy exhibited a promising growth rate of 4% in the last quarter of 2024, surpassing market expectations. The mining sector played a significant role in this performance, along with a revival in domestic demand. Although quarterly growth showed a slight decline, the overall economic growth for the year was positively influenced by strong exports, indicating a resilient economic landscape for Chile.
Original Source: www.tradingview.com
