Chile’s economy is rebounding in 2025, but with caution. After a mild slowdown, GDP growth is projected at +2.3% in 2025, accelerating to 3.0% in 2026 This recovery is fueled by domestic demand and high global prices for its exports, notably copper and lithium, which are in demand for the green energy transition Copper alone makes up about 10% of Chile’s GDP and half its export earnings, underscoring Chile’s historical reliance on this commodity. At the same time, inflation has eased to 3.4% (as of October 2025) – the lowest in over four years – allowing the central bank to cautiously cut interest rates. The government is balancing pro-growth reforms (e.g. streamlining permits for projects to spur $23 billion in private investment over two years) with social and fiscal stability measures. Below, we look at the key sectors in which Chile is investing for its future, and highlight some leading Chilean companies poised to benefit from these trends.
Strategic Sectors for Future Resilience
Renewable Energy and Green Hydrogen: Chile has transformed itself into a renewable energy powerhouse in just a few years. By December 2024, roughly 79% of Chile’s electricity came from renewable sources – one of the fastest green energy transitions in the world. The country is aiming even higher: 70% of all energy (not just electricity) from renewables by 2030, en route to carbon neutrality by 2050. This push is evident in the energy mix – solar and wind now rival hydropower as major sources, enabling Chile to slash coal use. Massive investments are flowing into the sector: Chile is attracting robust foreign direct investment in solar and wind projects (with an estimated $23 billion in private investment lined up for 2024–25). However, to fully leverage its sunshine and strong desert winds, Chile must expand its grid infrastructure – a 2025 Energy Transition Law addresses transmission bottlenecks in the remote north.
Critical Minerals: Copper and Lithium: Mining remains Chile’s economic bedrock, but the focus is shifting to ensure long-term stability. Chile is the world’s largest copper producer (providing ~22% of global supply) and the second-largest lithium producer (~24% of global supply). These critical minerals are essential for electric vehicles, batteries, and renewable grids, putting Chile at the heart of the global clean-tech supply chain. Strong demand from partners like China, the U.S., and Europe for copper and lithium is a boon (copper demand is expected to stay robust as the U.S. and EU invest in green infrastructure). However, Chile knows that relying too heavily on raw mineral exports is risky – commodity prices can swing wildly and external events (like a China slowdown) could hit revenues.
Technology and Digital Innovation: Beyond natural resources, Chile is betting on technology and innovation to drive its future growth. Often dubbed “Chilecon Valley” in the 2010s, the country has nurtured a vibrant startup ecosystem and digital infrastructure. Those efforts are paying off: Chile now ranks 1st in Latin America for advancing an AI ecosystem (according to the Latin American AI Index). Government policies have been key – a national AI strategy launched in 2021 and continued under President Boric provides funding and regulations to promote AI and data science development. Chile’s famed startup accelerator, Start-Up Chile, has attracted entrepreneurs worldwide and spurred successful local tech companies like NotCo (an AI-driven food tech startup valued over $1 billion).