Chile Posts 4.6% Year-on-Year Rise in Industrial Production for May 2025

Chile’s industrial production grew by 4.6% in the year leading up to May 2025, according to the country’s National Institute of Statistics. This is the biggest increase since December 2024 and shows that Chile’s key industries are picking up after a slow period.

Mining made the biggest difference, growing by 9.8%. Metallic mining, which includes copper, rose by 10.1%. Copper is Chile’s main export and a key part of its economy.

The country expects to produce 5.8 million metric tons of copper in 2025, which would be 6% more than last year. This growth comes as mining companies expand their operations.

Manufacturing also helped the economy, growing by 2.9%. Production of paper and paper products jumped by 16.4%, which suggests more demand for packaging and related goods.

This often means people and businesses are buying more products that need to be wrapped or shipped. However, the electricity, gas, and water sector shrank by 3.9%. Electricity production fell by 3.5%.

One reason is that Chile is getting less electricity from hydroelectric dams because of long dry spells. In April, hydroelectric power made up only 13% of Chile’s electricity, the lowest in decades. Other sources like gas, solar, and wind are filling the gap, but not completely.

Retail and online sales also went up by 3.5% over the past year. This shows that people are still spending money, even though the economy has faced challenges.

Chile’s central bank reported that the country’s overall economic activity grew by 2.5% in April, making it ten months in a row of growth. Unemployment is at 8.5%, and inflation is slowly going down.

Chile’s strong mining sector matters for the world because it supplies a quarter of all copper used globally. When Chile’s mines and factories do well, it helps keep prices stable and supports many industries around the world.

Even with problems like less water for electricity, Chile’s economy is showing it can adapt and keep growing. This story shows that Chile’s mines and factories are helping the economy recover.

The country still faces risks from water shortages and energy costs, but its main industries are proving strong enough to keep the economy moving forward.

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