Worldwide energy shifts to rely on Chilean exports
Chile's Long-term Growth Prospects Shine Bright
Chile's economy is poised for a promising future, with key drivers of growth centred around its expanding clean power sector, abundant mineral resources, focused technological innovation, and development of the digital economy.
Clean Power: Chile is making significant strides in renewable energy, investing in solar, wind, and hydroelectric projects as part of its transition to cleaner energy sources. This green energy expansion supports industrial growth and sustainable urban development, fuelling construction and industrial sectors with eco-efficient infrastructure.
Minerals: As a global leader in copper production (accounting for about 25% of the world's supply) and the second-largest producer of lithium, essential for electric batteries, Chile's mineral wealth continues to be pivotal for exports and government revenue. The government's national lithium strategy indicates a clear policy focus to leverage this mineral wealth for future growth.
Technological Innovation: Chile's economic diversification beyond mining includes increased emphasis on manufacturing and services. Integration of smart office solutions and energy-efficient infrastructure in construction suggests a move toward technologically advanced industries. Innovation in mining tech and digital technologies likely supports productivity and export competitiveness.
Digital Economy: Chile's proactive trade agreements and business environment foster growth in the digital sector. While direct data on digital economy expansion in 2025 is sparse, the emphasis on modern infrastructure and flexible commercial spaces points to growth in digital services and platforms supporting various sectors.
The economy rebounded quickly from the Covid pandemic due to a significant fiscal and monetary policy push. Inflation is expected to reach the 3% target at the start of 2024, and the current account deficit is expected to shrink at the same time. These improvements are testament to robust management by policymakers, resulting in a softer landing than expected in 2023.
Santander Chile, a prominent player in the financial sector, is analysing key growth areas in Chile's economy. The Vice President of Communications, Marketing, and Studies at Santander Chile has been identified as a key figure in this analysis.
Chile's institutional strength, particularly the autonomy of the central bank, is crucial to its macroeconomic stability. Priority should be given to productivity and investment in Chile to address structural challenges. Reducing regulatory barriers can strengthen competition and reduce research costs in Chile.
Chile's significant potential in renewable energy and green hydrogen production makes it attractive to international investors. Global demand for renewable resources increases the incentive for investment in these sectors. Chile's vast reserves of copper and lithium, critical minerals needed for electric vehicles and other green technologies, further enhance its appeal. Investment in renewable energy and green hydrogen sectors can benefit exporters and contribute to domestic economic growth.
Improved digital connectivity through fibre optic networks can boost productivity in Chile. Chile's reputation as a technology hub is set to be enhanced with the upcoming launch of the first subsea fibre optic cable between South America and the Asia-Pacific. These developments underpin long-term growth prospects for Chile.
- Santander Chile, being a significant player in the financial sector, is focusing on renewable energy as a key growth area in Chile's economy, recognizing the country's significant potential in this sector and its attractiveness to international investors.
- Chile's Vice President of Communications, Marketing, and Studies at Santander Chile is identified as a key figure in analyzing the nation's economy, with a particular emphasis on renewable energy, technology, and finance, given the country's focus on clean power and digital economy.
- As Chile continues to foster growth in the digital sector and integrate smart office solutions and energy-efficient infrastructure in construction, the technology industry plays a pivotal role in the country's economic development, contributing to productivity, export competitiveness, and sustainable urban development.
