Chile’s GDP Growth Exceeds Expectations in Final Quarter of 2024

Chile’s GDP grew by 4% year-on-year in Q4 2024, exceeding expectations. The mining sector surged by 7.3%, while non-mining growth reached 3.7%. Domestic demand rebounded, with household spending and investment increasing. Quarterly growth was 0.4%, and full-year economic growth stood at 2.6% driven by exports.

Chile’s economy displayed a year-on-year expansion of 4% in the final quarter of 2024, representing the strongest growth since the second quarter of 2022. This expansion follows a revised growth figure of 2% in the previous quarter and slightly surpasses market forecasts, which had anticipated a growth rate of 3.7%.

The mining sector experienced a notable surge of 7.3%, markedly exceeding the 4.6% growth recorded in Q3. Additionally, the non-mining sector saw growth of 3.7%, an increase from the prior 1.9%. This robust performance in both sectors contributed to the overall economic growth.

Moreover, domestic demand rebounded significantly, recording an increase of 4.3% compared to a decline of 0.2% in the previous quarter. This was propelled by a 2% rise in household spending and a recovery in investment at 3.3%, despite a decline in public expenditure of 1.8%.

Both exports and imports grew at accelerated rates, with exports increasing by 9.2% and imports by 10.2%, compared to previous growth rates of 7.3% and 1.2%, respectively.

On a quarterly basis, the GDP of Chile expanded by 0.4%, a decrease from the revised figure of 1.5% in Q3 and slightly lower than the expected growth of 0.5%. In terms of annual performance, the economy recorded a total growth of 2.6% for the year 2024, fueled primarily by a robust export environment.

In conclusion, Chile’s economy demonstrated strong growth in the last quarter of 2024, with a 4% year-on-year increase that surpassed forecasts. This growth was led by significant performance in both the mining and non-mining sectors, alongside a rebound in domestic demand. The acceleration in exports and imports further indicates a positive economic trajectory, culminating in a full-year growth rate of 2.6%.

Original Source: www.tradingview.com