ChileChapters
Chile has a track record of sound macroeconomic policies and robust institutions, which enabled it to restore macroeconomic balance after the disruptions created by COVID-19 and its aftermath. Over the past decade, growth averaged 2 percent, while productivity stagnated, constraining the creation of better and higher-paying jobs.
In terms of regional and international finance and partnerships to catalyse international resources, Chile has strategically engaged in international co‑operation through the Chilean International Co‑operation Agency. The agency leads efforts to support development initiatives focused on the eradication of poverty, the reduction of inequality and sustainable development. Emphasising South-South co‑operation, Chile shares experiences and policies with LAC nations, fostering mutual development. Additionally, Chile collaborates with countries such as Colombia, Mexico, and Germany, and with the Economic Commission for Latin America and the Caribbean, to bolster feminist foreign policies and international co‑operation for development. This collaboration aims to enhance the capacities of ministries of foreign affairs and international co‑operation agencies. Furthermore, partnerships with international financial institutions like the European Investment Bank and the CAF demonstrate commitments to regional development, environmental protection, energy transition and digital connectivity.
Source: The World Bank, OECD
Key indicators
- Area
- 756,102 km2
- Population
- 20.2 mn (2025)
- Government type
- presidential republic
- Languages
- Spanish 99.3% (official), English 10.2%, indigenous 1% (includes Mapudungun, Aymara, Quechua, Rapa Nui)
- GDP
- $347 billion (est. IMF 2025)
- Growth rate
- 2.4% (2025)
- HDI
- 44
- Capital
- Santiago
Macroeconomic indicators
Chile has a track record of sound macroeconomic policies and robust institutions and has effectively managed recent global volatility. However, the country faces mounting challenges owing to low growth, subdued investment, and a decade-long productivity stagnation. Weak investment and stagnant productivity dampen potential growth and strain labor market outcomes.
Mining is expected to support growth over the medium term. On the fiscal front, the government is making additional efforts to achieve its medium-term fiscal balance target, as structural shifts have led to a revenue shortfall. Poverty in Chile is the lowest in the region and has been steadily declining. However, significant regional disparities persist and progress in non-monetary indicators remains limited.
GDP grew by 2.6 percent in 2024, driven by rising mining exports. Investment fell by 1.4 per cent, while consumption grew by a mere 1.0 percent. Unemployment declined slightly to 8.5 percent but remained above the 7.2 percent rate recorded in 2019. Labor informality rates remained high, especially among women, reaching 28.4 percent compared to 24.8 percent among men. Inflation eased to 4.3 percent in 2024, down from 7.6 percent in 2023, but remained above the central bank’s target of 3 percent.
Real GDP growth is expected to be 2.6 percent in 2025, supported by strong exports and a rebound in consumption, alongside rising foreign and domestic investment, especially in energy and mining. The fiscal deficit should drop from 2.8 percent of GDP in 2024 to 1.5 percent in 2025. Inflation is projected to reach the Central Bank’s 3 percent target by the first half of 2026 and remain near that level. Poverty (US$8.30/day in 2021 PPP) is expected to decline from 5.5 percent in 2024 to 5.3 percent in 2025 and 5.1 percent in 2026.
Source: The World Bank
IMF Statistics:
| Subject descriptor | 2023 | 2024 | 2025 | 2026 | 2027 |
|---|---|---|---|---|---|
|
All Items, Consumer price index (CPI), Period average, percent change Percent (Units) |
7.582 |
3.927 |
4.27 |
3.123 |
3.0 |
|
Current account balance (credit less debit), Percent of GDP Percent (Units) |
-3.128 |
-1.469 |
-2.516 |
-2.229 |
-2.206 |
|
Current account balance (credit less debit), US dollar US dollar (Billions) |
-10.497 |
-4.852 |
-8.736 |
-8.099 |
-8.394 |
|
Exports of goods and services, Volume, Free on board (FOB), Percent change Percent (Units) |
0.439 |
6.26 |
4.404 |
2.889 |
2.036 |
|
Gross domestic product (GDP), Constant prices, Percent change Percent (Units) |
0.521 |
2.644 |
2.515 |
2.0 |
2.278 |
|
Gross domestic product (GDP), Current prices, Per capita, US dollar US dollar (Units) |
16814.208 |
16439.479 |
17180.935 |
17876.395 |
18622.564 |
|
Gross domestic product (GDP), Current prices, US dollar US dollar (Billions) |
335.627 |
330.21 |
347.174 |
363.299 |
380.53 |
|
Imports of goods and services, Volume, Cost insurance freight (CIF), Percent change Percent (Units) |
-10.575 |
1.915 |
8.921 |
1.115 |
2.172 |
|
Unemployment rate |
8.681 |
8.462 |
8.634 |
8.323 |
8.159 |
Estimates
Relationships with Luxembourg
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
Agreement under negotiation
Air Services agreement
- Agreement from 25 February 2002
Not ratified by Luxembourg yet (Transport for preparing the explanatory statement)
Further information
Foreign Trade
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact points in Chili
Luxembourg is represented by a Chargée d'affaires en pied with residence in Brazil: Mrs Jill ENGEL
SHIS QL 12, conjunto 5, casa 18
Lago Sui
71630-255 Brasília/DF .
Brazil
Tel.: (+55) 61 3551 7741
E-Mail: brasilia.amb@mae.etat.lu
Honorary consul
Santiago
Mr Juan Manuel FUENTES VALENZUELA
Honorary Consul with jurisdiction over the Republic of Chile
Arturo Claro 1465
Providencia Santiago
Chile
Tel.: (+56) 9 9821 8016
E-Mail: santiago@consul-hon.lu
Source: Ministry of Foreign Affairs Luxembourg
Country risk as defined by Office du Ducroire for Chile
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Link: Ducroire Office - Country Risk for Chile / Euler Hermes Country rating Chile