Mining is expected to support growth over the medium term. On the fiscal front, the government is making additional efforts to achieve its medium-term fiscal balance target, as structural shifts have led to a revenue shortfall. Poverty in Chile is the lowest in the region and has been steadily declining. However, significant regional disparities persist and progress in non-monetary indicators remains limited.
GDP grew by 2.6 percent in 2024, driven by rising mining exports. Investment fell by 1.4 per cent, while consumption grew by a mere 1.0 percent. Unemployment declined slightly to 8.5 percent but remained above the 7.2 percent rate recorded in 2019. Labor informality rates remained high, especially among women, reaching 28.4 percent compared to 24.8 percent among men. Inflation eased to 4.3 percent in 2024, down from 7.6 percent in 2023, but remained above the central bank’s target of 3 percent.
Real GDP growth is expected to be 2.6 percent in 2025, supported by strong exports and a rebound in consumption, alongside rising foreign and domestic investment, especially in energy and mining. The fiscal deficit should drop from 2.8 percent of GDP in 2024 to 1.5 percent in 2025. Inflation is projected to reach the Central Bank’s 3 percent target by the first half of 2026 and remain near that level. Poverty (US$8.30/day in 2021 PPP) is expected to decline from 5.5 percent in 2024 to 5.3 percent in 2025 and 5.1 percent in 2026.