Chile’s Q4 Growth Slows Slightly

Chile’s economy grew 1.6% year-on-year in Q4 2025, slowing from 1.7% in Q3 and slightly below the 1.7% forecast. Trade led growth at 7.2%, personal services were up 3.3%, transportation up 1.9%, and manufacturing up 1.8% , supported by food processing and metal products. Agriculture and livestock rose 0.3%, and construction grew 1.5%. Meanwhile, mining fell 6.2% on weaker copper output and utilities dropped 3.5%. For the full year 2025, economic activity expanded 2.5% year-on-year, reflecting strength in domestic demand fueled by both investment and consumption.

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.