Chile GDP Growth Slows in Q3

Chile’s economy grew 1.6% year-on-year in Q3 2025, slowing from 3.3% in the previous quarter and below expectations of 1.9%. Trade rose 5.8%, amid wholesale gains in machinery, equipment, raw materials, food, beverages, and tobacco, along with stronger retail and e-commerce sales. Business services increased 4.2%, supported by higher demand for architectural and engineering services from the mining sector. Personal services grew 3.4%, led by health and education. Transportation expanded 3.6%, while manufacturing rose 1.7%, boosted by food processing and metal products. Agriculture and livestock increased 4.7%. Construction grew 0.8%, with engineering works offsetting declines in building. In contrast, mining fell 6.5% on weaker copper output, and utilities dropped 4.4% amid lower electricity generation.

Chile’s economy expanded by 3.3% year-on-year in the second quarter of 2025, accelerating from an upwardly revised 2.5% increase in the previous quarter and above market expectations of a 2.9% rise. Domestic demand picked up to 5.8% from 1.6% in the prior quarter, due to household consumption (3.1% vs 2%) and investment (5.6% vs 1.5%). However, public spending eased (2.6% vs 3.9%). Net external demand contributed negatively to growth, with imports rising 14.6% while exports increased at a softer 5.4%. On a seasonally adjusted quarterly basis, the economy grew by 0.4% from the previous period in Q2.

Chile’s economy expanded by 2.3% year-on-year in the first quarter of 2025, easing from a 4% increase in the previous quarter but slightly above market expectations of a 2% rise. Growth was observed in manufacturing (5.2%), agriculture and forestry (5.2%), and especially in fishing, which saw a surge of 29%. The services sector also contributed positively to the overall expansion. In contrast, the mining sector contracted by 1%, a sharp reversal from the 7.3% growth recorded in Q4 2024. Meanwhile, domestic demand slowed to 1.2% from 4.3% in the prior quarter, weighed down by a decline in household consumption (1.8% vs 2%) and investment (1.4% vs 3.3%). However, public spending rebounded by 3.1%, recovering from a 1.8% contraction. External trade supported growth, with exports rising from 9.2% to 10.7%, while imports declined from 10.2% to 9%. On a seasonally adjusted quarterly basis, the economy contracted by 5.5%, following a 9.4% gain in the fourth quarter of 2024.