Chilean Economy: Mining Boosts Industrial Production with a 12.1% Increase

Industrial production in Chile registered a year-on-year increase of 3.8% in April 2025, a result driven primarily by the vigorous performance of the mining sector, especially metallic mining, which expanded by 12.1%. Trade also showed positive figures, according to the National Institute of Statistics (INE).

Economic activity in Chile showed mixed signals but with a notable boost from the mining sector during April 2025. The Industrial Production Index (IPI) grew 3.8% compared to the same month last year, according to data released this Friday, May 30, by the National Statistics Institute (INE).

The main factor behind this increase was the Mining Production Index (IPMin), which grew 10.1% year-on-year. This growth was largely due to increased activity in two of the three types of mining that comprise the index. Within mining, the metallic mining subsector was the absolute protagonist, with a 12.1% expansion in April. This strong increase in metallic mining contributed 10.217 percentage points to the total variation in the mining index, underscoring its weight in the country's productive structure. Copper, Chile's main export, is an essential component of this subsector.

In contrast to the mining dynamism, the Manufacturing Production Index (IPMan) showed zero growth (0.0%) year-on-year. However, within this sector, food processing stood out with a 3.9% year-on-year increase, contributing 1,303 percentage points to the overall manufacturing index. Meanwhile, the Electricity, Gas, and Water Production Index (IPEGA) registered a 1.0% decrease in April 2024 compared to the same month of the previous year. This drop is explained by lower activity in two of its three components, with electricity having the greatest negative impact, with a 1.4% drop that subtracted 1,023 percentage points from the index.

Beyond the industrial sector, the INE also reported on commercial activity. The Trade Activity Index (IAC) at constant prices increased by 3.1% year-on-year in April 2025. This result was influenced by growth in two of its three divisions:

• Retail trade, excluding motor vehicles and motorcycles, grew by 5.5% year-on-year, mainly due to the increase in sales of food, beverages, and tobacco in non-specialized stores.
• Wholesale trade, excluding motor vehicles and motorcycles, expanded 1.3% compared to April 2024, driven primarily by the increase in wholesale sales of solid, liquid, and gaseous fuels and related products.
• On the other hand, the wholesale, retail, and repair division for motor vehicles and motorcycles recorded a year-over-year decrease of 0.1%, attributed to lower sales of motor vehicle parts, components, and accessories.

The Supermarket Sales Index (ISUP) at constant prices increased by 5.0% over the twelve months, accumulating a 1.4% expansion in the fourth month of the year. The seasonally adjusted and calendar-adjusted series showed a 0.7% expansion compared to the previous month and a year-on-year growth of 4.1%. Finally, the Retail E-Commerce Index (ICEM) at current prices registered a 13.6% year-on-year increase in April, accumulating a 13.8% growth so far this year. The product line that most influenced this increase was electronic products for home appliances and technology.

These data suggest an economy that, while facing challenges in some sectors such as manufacturing and energy, is benefiting from the strength of its mining export sector and a gradual recovery in domestic consumption and trade. The evolution of international commodity prices, especially copper, and the dynamics of domestic demand will be key to Chile's economic performance in the coming months.