A Stronger-Than-Expected Finish
Chile’s economic performance in 2025 exceeded expectations, with the Central Bank of Chile reporting an annual GDP growth of 2.5%. This figure represents a modest but significant upward revision from the initial 2.3% projection derived from earlier Imacec (Monthly Economic Activity Index) data. The result aligns with the government's own targets, providing a stable conclusion to the 2025 fiscal year.
With this latest data, the average economic growth during President Gabriel Boric’s administration (2022–2025) stands at 2%. When contextualized against previous administrations, this performance sits ahead of Michelle Bachelet’s second term (1.8%) but remains below the growth rates recorded by predecessors such as Patricio Aylwin (7.4%), Eduardo Frei (5.5%), and Ricardo Lagos (4.8%).
Drivers of Growth: Consumption and Investment
According to the Central Bank, the primary engine behind the 2025 expansion was domestic demand, which grew by 4.2%. This growth was balanced across two key pillars: household consumption and capital investment.
Household consumption rose by 2.7%, with notable increases across all segments. Spending on non-durable goods—particularly food and apparel—led the charge, followed closely by a surge in demand for services, specifically in the healthcare, hospitality, and restaurant sectors. Furthermore, the technology sector saw a boost in sales of durable goods, while government spending contributed to the overall growth with a 3% increase, largely attributed to expanded public health expenditures.
Investment also showed remarkable vitality, expanding by 8.9%. This was largely driven by gross fixed capital formation, which rose by 7.0%, fueled by significant acquisitions in transport equipment and electrical machinery. Construction and engineering projects also provided a secondary, yet meaningful, contribution to the investment landscape.
External Trade and Sectoral Performance
Chile’s trade balance reflected a dynamic economy. Exports grew by 4.6%, bolstered by strong performances in the fruit industry—notably cherries and nuts—as well as gold and food products. The service export sector also saw an uptick, primarily due to increased tourism spending.
However, imports outpaced exports, growing by 10.5%. This rise was largely consistent with the country’s industrial needs, as the nation imported higher volumes of machinery, electronics, and transport vehicles to support domestic infrastructure and consumer demand.
From a sectoral perspective, the economy was buoyed by robust activity in the commerce, manufacturing, and business services sectors. Conversely, the mining sector and the utilities sector (electricity, gas, and water) experienced contractions, acting as a drag on what might have otherwise been an even higher growth figure.
Data Revisions and Long-term Outlook
In accordance with its standard national accounts revision policy, the Central Bank also updated figures for previous years. The growth for 2023 was revised upward by two-tenths to 0.7%, and 2024 was similarly adjusted from 2.6% to 2.8%. These revisions, combined with the final 2025 tally, highlight a resilient economic path. As the country moves forward, the combination of a 4.0% growth in real gross national disposable income and a healthy savings rate suggests that the Chilean economy enters the next cycle with a stable foundation, despite the ongoing challenges of global market fluctuations.
