Rising copper investments will boost output in Chile

Significance

As a result, forecasts suggest an increase in production over the rest of the decade, perhaps approaching one-third. Industry sources attribute this partly to a shift in the left-wing government's previously critical approach to natural-resource exports, which it now sees as crucial to supporting economic growth.

Impacts

• Despite stronger mining investment, total investment, measured as gross fixed capital formation, is forecast to contract by 0.8% this year.
• Central Bank studies suggest mining investment may account for 0.6-0.75 percentage points of GDP growth in 2024-26.
• Higher copper prices are contributing to the growth of exports, which the Central Bank expects to reach 6.1% this year.