Chile’s Current Account Deficit Narrows in Q4 2024

Chile’s current account deficit narrowed to $1.78 billion in Q4 2024 from $2.66 billion the year before, driven by a significant increase in the goods surplus and a reduction in the services gap. The yearly deficit also decreased to $4.85 billion from $10.50 billion in 2023.

In the fourth quarter of 2024, Chile’s current account deficit significantly decreased to $1.78 billion, a marked improvement from the $2.66 billion deficit reported in the same quarter of the previous year. This positive trend is attributable to an increase in the goods surplus, which surged to $4.76 billion, up from $3.53 billion recorded a year prior.

While the services gap experienced a modest decline to $2.21 billion from $2.36 billion, the primary income gap witnessed an increase to $4.28 billion, compared to $4.00 billion in the prior year.

For the entire year of 2024, there was a notable reduction in Chile’s current account deficit, which fell to $4.85 billion, a substantial decrease from the $10.50 billion deficit of 2023.

In summary, Chile has demonstrated improvement in its current account balance throughout 2024, with considerable reductions in both quarterly and yearly deficit figures. The rise in the goods surplus has significantly contributed to this positive outcome, despite some challenges in the services and primary income sectors. Overall, Chile’s economy appears to be on a better trajectory as it moves forward.

Original Source: www.tradingview.com