Infrastructure, mining and speeding up permitting considered key to Chile's economic recovery

Boosting mining production, strengthening infrastructure and removing obstacles to permitting are key aspects for restoring Chile's economic growth, representatives of industrial sectors told a seminar hosted by business federation Sofofa.

For this year, the economy is forecast to grow 2.0-2.75%, in line with much of South America, and the price of copper is expected to remain attractive, averaging US$4.30/lb for both this year and next.  

While these figures would allow for a degree of short-term stability, the forecasts are uncertain just seven months before a change of government, and the outlook could worsen if the country does not adopt an efficient, pro-growth system regarding permits, according to experts.

The sectoral permitting law aims to streamline processes by reducing evaluation times by between 30% and 70%, a positive aspect considering a context where foreign direct investment of US$6.8bn in the first five months of the year was down 14% over the same period 2024.

Although the law still needs to be reviewed by the constitutional court, it is expected to take effect in August. The law enjoys broad support due to its potential to accelerate investment and fiscal revenues. 

What's missing in infra? 

There are also other areas where progress is lacking, authorities agreed at the Sofofa event. One of the main objectives is to increase public-private efforts in infrastructure as a catalyst for development and a driver of productive and export diversification.

The country needs to boost drinking water coverage, increase renewable energy generation, build new free-flow highway concessions, world-class ports, intermodal systems and start production of green hydrogen, among other things.

"Chile's GDP depends 75% on foreign trade. To become a developed country, we need to increase exports," Eduardo Frei, a former president and head of infrastructure think tank CPI, told the seminar, referring to what will be one of the biggest challenges for the next government. 

Frei believes it is crucial to achieve new free trade agreements and consolidate a strong parliament focused on passing pro-growth laws.

Mining

Carlos Urenda, general manager of the mining council, which represents large producers, proposes applying a fast-track mechanism for key projects that are stalled in the evaluation process and believes that a separate reform to modernize the environmental review system (SEA) should also be approved. 

"The mining sector has US$83bn in projects in the pipeline. Permits must be obtained, but unfortunately the sectoral authorization law isn't everything," he said.

The SEA reform includes depoliticizing decisions and making evaluations more technical, among other aspects.

Politics

Chile has everything to become an economic champion thanks to its strong potential for green energy, mineral resources and strategic position on the Pacific coast for trade. However, with the presidential elections in November and December – first round and runoff – the political landscape is turbulent ahead of the new government taking office in March 2026.

"The outlook reflects a disenchanted citizenry, with high levels of political disaffection, party fragmentation and low adherence to long-term political projects. This is reflected both in electoral volatility and in the difficulty of building stable majorities in congress," Christian Siebert, a political scientist and former interior ministry official, told BNamericas.

The situation is exacerbated by the global geopolitical scenario, with the prevailing trade tensions. But there are opportunities. "Chile has strategic potential in critical raw materials, such as lithium and copper, which could become an engine of development if a coherent, long-term and technologically innovative state policy is articulated," Siebert said.