Chile: Economic activity grows at fastest year-on-year pace in two years in December
Latest reading: Economic activity grew 6.6% in year-on-year terms in December, which was above November’s 2.1% increase and well above market expectations. The print marked the best reading since January 2022, and was driven by improvements in the mining and non-mining sectors. That said, December’s growth figure was flattered by extra working days compared to December 2023, in addition to a favorable base of comparison.
On a monthly basis, economic activity rose 0.9% in seasonally adjusted terms in December, which was above November’s 0.3% expansion and marked the best result since July. Meanwhile, annual average economic activity growth rose to 2.5% in December (November: +1.9%), pointing to an improving trend.
Panelist insight: On the outlook, Itaú Unibanco analysts said:
“The strong end to 2024 implies favorable carryover for 2025. If the economy were to maintain the 4Q24 levels through 2025, activity would increase by 0.6%. Mining dynamics will play a key role; after detracting from growth during seven of the last nine years, the rebound in 2024 (6.2% YoY) is welcomed. Expectations for 2025 are for the recovery to continue, with the Chilean copper commission expecting growth to persist at a 6% rate.”