Chile’s economy has once again captured the spotlight, surprising analysts with an impressive 4% year-on-year growth in the last quarter of 2024. This marks the strongest pace of expansion since Q2 2022, outpacing predictions of a 3.7% increase. So, what’s driving this unexpected economic vigor?
Mining Sector: A Powerhouse of Growth
The mining sector emerged as a star performer, expanding by a striking 7.3%. This figure eclipses the 4.6% growth recorded in Q3, highlighting mining’s pivotal role in bolstering Chile’s economic fortunes. As precious metals and other commodities see heightened demand, the sector continues to inject vitality into the nation’s GDP.
Non-Mining Sector Gains Momentum
Complementing the mining boom, the non-mining sector also witnessed growth, rising by 3.7%. This is a palpable improvement from the 1.9% increase in Q3. The more diversified sectors such as technology, manufacturing, and service industries are playing a crucial role in supporting overall economic health.
Domestic Demand and Investment Rebound
Domestic demand in Chile witnessed a robust resurgence, growing by 4.3% compared to a prior contraction. Household spending saw a modest 2% rise, while investment trends turned positive with a 3.3% increase after a previous dip. However, a decline in public expenditure by 1.8% poses questions about fiscal policy adjustments.
Export and Import Surge
Both exports and imports showcased significant acceleration. Exports climbed by 9.2%, while imports surged by an impressive 10.2%, as global and domestic markets capitalize on favorable trading conditions. This trade dynamism underscores Chile’s interconnectedness with the global economy and its capacity to seize opportunities in international markets.
A Full Year of Growth
The entire year of 2024 saw Chile’s economy grow by 2.6%, primarily driven by strong export performance. This overall growth stands as a testament to the resilient nature of Chile’s economy amidst global headwinds.
According to TradingView, this surprising economic resilience places Chile in a promising position as it looks toward 2025, with continued growth anticipated.
Chile is solidifying its standing as a dynamic economic player on the world stage. 🌍
