FX.co ★ Chile Q1 GDP Growth Slightly Beats Forecasts

Chile's economy experienced a 2.3% growth year-on-year in the first quarter of 2025, marking a deceleration from the 4% growth observed in the previous quarter, yet slightly surpassing market forecasts of a 2% increase. Notable growth was recorded in the manufacturing sector, agriculture and forestry, each growing by 5.2%, with the fishing industry making a remarkable leap of 29%. The services sector also played a role in driving this overall economic expansion. However, the mining sector saw a downturn, contracting by 1%, a significant contrast to the 7.3% growth it achieved in the fourth quarter of 2024. Domestic demand experienced a slowdown, increasing by 1.2% compared to 4.3% in the previous quarter, influenced by declines in household consumption, which decreased from 2% to 1.8%, and investment, which fell from 3.3% to 1.4%. Nonetheless, public spending saw a rebound, increasing by 3.1% after a previous contraction of 1.8%. On the external trade front, growth was bolstered by an increase in exports, from 9.2% to 10.7%, while imports saw a decrease, dropping from 10.2% to 9%. In terms of seasonally adjusted quarterly figures, the economy contracted by 5.5% following a 9.4% increase in the last quarter of 2024.