Chile GDP Exceeds 2025 Forecast Amid Mining Sector Decline

Chile's GDP grew by 2.5% in 2025, surpassing the central bank's forecast of 2.3%, despite a downturn in mining. The growth was driven by retail trade, personal services, manufacturing, and business services. New President Jose Antonio Kast aims for 4% annual growth and plans to cut corporation tax from 27% to 23%. Chile's lithium production is expected to rise by 4.9% to 67,300 tonnes in 2026, supported by capacity expansions at Salar de Atacama. A joint venture between Codelco and SQM aims to enhance lithium extraction through 2060.

Published Mar 26, 2026

Chile's GDP growth reached 2.5% in 2025, exceeding the central bank's 2.3% forecast, despite a decline in the mining sector. The growth was attributed to strong performances in retail trade, personal services, manufacturing, and business services.

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President Jose Antonio Kast has set a 4% annual growth target and proposed a reduction in corporation tax from 27% to 23% to stimulate the economy. Lithium production in Chile is projected to increase by 4.9% to 67,300 tonnes in 2026, driven by expansions at SQM's Salar de Atacama. A joint venture, Nova Andino Litio SpA, was established by Codelco and SQM to manage lithium extraction through 2060, enhancing operational sustainability.