Chile’s GDP Growth Exceeds Forecasts in Q4 2024

In Q4 2024, Chile’s economy grew by 4% year-on-year, surpassing expectations. The mining sector surged by 7.3% while non-mining increased by 3.7%. Domestic demand rebounded, driven by household spending and investment recovery, despite a drop in public expenditure. Exports and imports also accelerated, contributing to a healthy economic outlook with 2.6% growth for the year.

Chile’s economy demonstrated a year-on-year expansion of 4% in the last quarter of 2024, representing the highest growth rate since the second quarter of 2022. This growth follows a revised increase of 2% in the third quarter, surpassing market expectations forecasted at 3.7%.

The mining sector showed remarkable resilience, achieving a 7.3% growth compared to 4.6% in the preceding quarter, whereas the non-mining sector grew by 3.7%, a notable improvement from 1.9% previously. Domestic demand exhibited a robust rebound, rising by 4.3%, in contrast to a slight decline of 0.2%. This upturn was propelled by household spending increasing by 2% from 1%, as well as a recovery in investments, which grew by 3.3% after a contraction of 0.8%. However, it is noteworthy that public expenditure saw a decrease of 1.8%, following a substantial growth of 6.7% in the prior quarter.

Both exports and imports accelerated during this period; exports rose by 9.2% from 7.3%, while imports increased by 10.2% from just 1.2%. On a quarterly basis, Chile’s GDP recorded a 0.4% growth, a decline from the upwardly revised 1.5% growth in Q3, and slightly below the anticipated 0.5%. For the entirety of 2024, the economy experienced overall growth of 2.6%, significantly bolstered by robust export performance.

In summary, Chile’s economy displayed impressive growth in the last quarter of 2024, driven primarily by the mining sector and a rebound in domestic demand. Although quarterly growth did not meet expectations, the overall yearly growth was substantial, largely attributed to strong exports, indicating a positive trend for the Chilean economy moving forward.

Original Source: www.tradingview.com