Chile Current Account Gap Widens to 2-Year High

Chile posted a current account deficit of $4.6 billion in the third quarter of 2025, widening from the $2.4 billion gap from the corresponding period of the previous year to reflect the largest deficit in two years. The goods account surplus narrowed to $2.4 billion from $4.1 billion last year amid as a surge in imports more than offset the slight growth in exports. In the meantime, the deficit in the primary account widened to $4.8 billion from $4 billion. In turn, the service gap narrowed slightly ($-2.3 billion vs $-2.3 billion in Q3 2024), while the secondary account remained relatively balanced.

Chile logged a current account deficit of $3.25 billion in Q2 2025, the largest since Q3 2023 and widening from $1.86 billion in the same period a year ago. The primary income deficit increased to $5.59 billion from $4.94 billion, mainly due to a $4.61 billion shortfall in direct investment income, as foreign investors earned $5.81 billion in Chile, while Chilean investments abroad generated $1.21 billion. At the same time, the services shortfall rose to $2.47 billion from $2.38 billion, and the goods surplus shrank to $4.52 billion from $5.26 billion in June 2024, with imports (+13.1%) growing more than exports (+7%). Conversely, the secondary income surplus rose to US$0.3 billion from US$0.2 billion, driven by net transfers of US$300 million, reflecting additional tax revenues on dividends paid by foreign investments in Chile.

Chile posted a current account surplus of $0.63 billion in the first quarter of 2025, narrowing from $1.18 billion in the same period a year ago. The goods surplus shrank slightly to $6.90 billion from $6.94 billion in Q1 2024, as imports surged 8.4% and exports rose at a slower 6%. Additionally, the secondary income surplus fell to $0.06 billion from $0.20 billion. At the same time, the services deficit narrowed to $1.77 billion from $2.14 billion, while the primary income gap rose to $4.56 billion from $3.82 billion.