Chile Leads Global Stock Market Rally in 2025 with 56.2%

Santiago de Chile: Chile's S&P IPSA stock index became one of the world's best-performing stock markets during 2025, with a 56.2% annual gain, far above the 16.4% gain of the US S&P 500 in the same period, according to Bloomberg data published in April 2026. So far in 2026, the IPSA has accumulated an additional gain of 8.2%, consolidating Chile as one of the most attractive emerging markets for international investors.

The performance of the Chilean market reflects the country's macroeconomic stability under President José Antonio Kast, elected in December 2025, as well as the surge in copper prices — Chile's main export — on the international market. Chile holds the world's largest copper reserves, a metal whose demand has surged due to the acceleration of the global energy transition toward clean technologies such as electric vehicles and wind turbines.

Copper and Energy as Growth Engines

Chile's copper exports represented more than 50% of the total value of the country's exports in 2025. The boom in lithium prices — of which Chile also holds the world's largest reserves in the Atacama Salt Flat — has constituted another source of export revenues. The Kast government has promised to attract more foreign direct investment to the mining sector by simplifying environmental permits and reducing regulatory uncertainty.

Challenges: Relationship with China and the Private Sector

However, Chile's new government faces the complex challenge of balancing its pro-Washington orientation with the country's economic dependence on China, which absorbs 39% of Chilean exports. Codelco, the state-owned world's largest copper producer, is going through a period of operational challenges and needs investment to modernize its mines.