A surge in global demand for green technology has significantly boosted Chile’s trade surplus in the third quarter of 2024. This growth was driven by an 18.2% increase in mineral exports, particularly copper and lithium, to major manufacturing hubs in North America and Europe. Consequently, the trade surplus in goods reached nearly $4.5 billion USD. Meanwhile, agricultural and service exports, such as fresh fruit, wine, and eco-tourism, recovered more slowly, growing by just $0.4 billion USD to reach $3.1 billion USD.
While this export boom has elevated national income, economists warn that a sustained increase in mineral exports could lead to an appreciation of the Chilean Peso (CLP), potentially damaging the international competitiveness of domestic manufacturing and traditional non-mineral export sectors.
With reference to Extract A, assess the likely impact of a rise in the value of mineral exports on the Chilean economy.
