Santiago. The Central Bank of Chile revealed on Wednesday that the national economy expanded by 2.5 percent throughout 2025. This annual growth figure reflects a 1.6 percent increase in the fourth quarter compared to the same period in 2024. Officials stated the result mirrored the performance of domestic demand, which received support from both investment and consumption. The data was released in the Cuentas Nacionales report regarding annual performance. The announcement confirmed expectations for moderate recovery following a sluggish start to the decade. Market observers noted the timing coincides with the end of the presidential administration.
Investment activity emerged as the primary driver of this economic expansion in the latter half of the year. Fixed gross capital formation grew by 7 percent during the year. This increase stemmed from higher purchases of electrical equipment and transport vehicles such as trucks and buses. The overall investment component rose by 8.9 percent, surpassing previous forecasts in the sector. Analysts noted this shift indicates renewed confidence among business leaders regarding domestic operations.
Household consumption also contributed significantly to the positive economic outcomes recorded this year. National accounts showed a 2.7 percent expansion in consumption for the full year. All components of household spending recorded increases during this period. Purchases of non-durable goods, including clothing and food, registered the highest incidence in the data. This broad-based spending behavior suggests stability in the labor market for many families.
Sectoral performance varied widely across different industries throughout the year. The mining sector experienced a decline of 1.3 percent due to lower copper ore grades. Water restrictions and production stoppages at certain mines further reduced output. In contrast, the agricultural-silviculture sector expanded by 6.3 percent in activity. The divergence highlights the structural challenges facing the traditional export engine. Mining represents a significant portion of Chile's export revenue generation.
The fishing industry recorded a substantial surge of 15.8 percent in production volume. Manufacturing activity grew by 3.1 percent, determined by food processing and metal products. However, the electricity and gas supply sector retreated 2.7 percent due to generation issues. Trade and commerce sectors grew by 6.1 percent across all areas. These mixed results underscore the uneven nature of the national economic recovery.
Transportation services increased by 3.4 percent associated with freight movement activities. Communications and information services rose 2.2 percent during the reporting period. Personal services grew 3.9 percent, primarily influenced by health sector performance. These figures indicate broad-based activity despite the mining sector weakness. Service providers benefited from the overall uptick in economic activity.
Contextual analysis reveals a revision of past growth figures by the Central Bank. The 2023 growth estimate moved from 0.5 percent to 0.7 percent. The 2024 figure was adjusted upward from 2.6 percent to 2.8 percent. Consequently, the average activity for the last four years under the previous administration totaled 2 percent. This revision provides a clearer picture of the economic trajectory during the transition period. Gabriel Boric remains the final president of the current term.
External accounts showed a current account deficit of US$ 4.349 billion for the year. This deficit represented 1.2 percent of the gross domestic product. Available national income expanded 4 percent due to improved terms of trade. External payments partially compensated for these gains in real terms. The balance of payments remains a key metric for policy makers.
Total gross savings reached 24.1 percent of GDP in nominal terms. This figure included national savings of 22.8 percent and external savings of 1.2 percent. The data suggests a resilient financial position despite external economic headwinds. High savings rates may provide a buffer for future capital expenditure needs. Financial stability remains a priority for the upcoming government administration.
Market participants will now assess whether investment trends can sustain momentum into 2026. The Central Bank continues to monitor inflation and external balance risks closely. Future policy decisions will likely hinge on whether domestic demand remains robust. Investors will watch for signs of sustained growth in the coming quarters.
