Chile’s economy is projected to grow by 2.7% in 2025, as its key mining sector recovers, Finance Minister Mario Marcel announced during a budget presentation on Tuesday.
The world’s largest copper producer is expected to benefit from a 3.5% increase in mining output next year, with overall economic activity forecasted to expand by 2.5%.
Marcel highlighted that investment is set to rise by 5.9% in 2025, driven by private sector projects.
Government revenues are also anticipated to climb, thanks to a new mining royalty, increased lithium revenues from a partnership between state-owned Codelco and SQM, and a tax compliance law. These measures are expected to boost revenues by an amount equivalent to 1% of GDP.
Public debt is projected to reach just over 41% of GDP in 2025, Marcel added.
Chile’s economy is on track to achieve the 2.6% growth forecast for this year, Marcel noted. He emphasized that if the 2025 predictions hold, the country’s average annual growth from pre-pandemic years through 2025 would surpass the average for Latin America during the same period.
The budget proposal also forecasts inflation at around 4.2% for 2025, with domestic demand expected to grow by 3.4%. Consumer prices in Chile rose by 0.3% in August, with 12-month inflation at 4.7%, according to the national statistics agency INE.