Chile’s Current Account Deficit Narrows Significantly in Q4 2024

Chile’s current account deficit decreased to $1.78 billion in Q4 2024 from $2.66 billion a year prior. The goods surplus surged to $4.76 billion, while the services gap slightly declined. The full year deficit reduced to $4.85 billion from $10.50 billion in 2023, indicating economic improvement.

In the fourth quarter of 2024, Chile experienced a reduction in its current account deficit, which narrowed to $1.78 billion from $2.66 billion during the same quarter of the previous year. This positive shift reflects an increase in the goods surplus, which rose significantly to $4.76 billion compared to $3.53 billion a year earlier.

Additionally, the services gap experienced a marginal decline, falling to $2.21 billion from $2.36 billion. Conversely, the primary income gap increased to $4.28 billion, up from $4.00 billion in the prior year, indicating continued challenges in the primary income sector.

Overall, for the entire year of 2024, Chile’s current account deficit improved to $4.85 billion, a substantial reduction from $10.50 billion recorded in 2023. This notable decrease signals a recovery in the nation’s economic dynamics and external balance.

Chile’s current account deficit has significantly narrowed in the fourth quarter of 2024, with a notable increase in the goods surplus. Despite a slight uptick in the primary income gap, the overall improvement showcases the country’s advancing economic health. The reduction in the current account deficit for the entire year further highlights this positive trajectory, reinforcing Chile’s economic resilience.

Original Source: www.tradingview.com