Viktor Orbán welcomed Chile’s president-elect, José Antonio Kast in Budapest.
The Prime Minister wrote on his X page:
“Pleasure to meet with Jose Antonio Kast, President-elect of Chile, in Budapest. We discussed our fight against illegal migration and ways to support families. Like Hungary, Chile values traditional, family-based societies. Honoured to be the first European leader to meet him since his election.”
Pleasure to meet with @joseantoniokast, President-elect of Chile, in Budapest. We discussed our fight against illegal migration and ways to support families. Like Hungary, Chile values traditional, family-based societies. Honoured to be the first European leader to meet… pic.twitter.com/kdBo6cMb5N
— Orbán Viktor (@PM_ViktorOrban) February 4, 2026
Tamás Sulyok, President of Hungary also expressed his appreciation of Chile and its newly elected president-to-be, writing on X:
“Diplomatic relations between Hungary and Chile are 101 years old this year, and from 2026 all signs indicate that they may rise to a new level, both politically and economically. We discussed this with José Antonio Kast, Chile’s President-elect, at Sándor Palace. President Kast and we share the same views on several global issues, and our nations are united by fundamental values rooted in our Christian heritage, such as the protection of the family and its central role in society.”
Diplomatic relations between Hungary and Chile are 101 years old this year, and from 2026 all signs indicate that they may rise to a new level, both politically and economically. We discussed this with José Antonio Kast, Chile’s President-elect, at Sándor Palace.⁰⁰President… pic.twitter.com/lLhFmMTmzI
— Dr. Tamás Sulyok (@DrTamasSulyok) February 4, 2026
As Oeconomus Economic Research Foundation points out: We rarely think of Chile as a trading partner, yet it is one of the most rapidly developing and successful countries in Latin America.
Chile is Hungary’s fourth most important export partner among Latin American countries, and on the import side, it is the second largest source of goods to Hungary from the region after Brazil.
The December 2025 presidential election was won by right-wing José Antonio Kast, who will take office on March 11, 2026. He has advocated a decidedly right-wing, conservative policy, and his victory marks a sharp turn after the current, left-wing Boric era.
In a brief analysis, Oeconomus reviews the diplomatic and trade relations between the two countries, touching on the situation of the Chilean economy.
Chile is one of Latin America’s most open economies and one of the most integrated into the global economy. The capital of this country of nearly 20 million people, Santiago, serves as its financial, business, and economic center. In 2024, it was the fifth largest economy in Latin America, as well as the world’s largest copper producer and second largest lithium producer.
It currently has free trade agreements with 64 countries, accounting for 95% of its foreign trade. Chile’s economic policy is characterized by decisiveness and predictability, with a solid financial system and substantial foreign exchange reserves. One of the main pillars of its economy is international trade.
In contrast to Salvador Allende’s socialist model, Augusto Pinochet consistently reorganized the Chilean economy along free market, liberal lines. State-owned companies were largely privatized during and after Pinochet’s rule; however, the copper mines nationalized by Allende, which have been under direct military control since Pinochet’s time, remain state-owned. Regional economic policy in the 1970s and 1980s was also greatly influenced by economists who espoused the economic principles of the Chicago School (Chicago Boys) represented by Milton Friedman. The Chilean economy grew at an above-average rate at the end of the 20th century. An analysis of recent years’ indicators shows that the economic impact of the 2020 coronavirus pandemic has also severely affected Chile’s results: In 2020, GDP fell by 6.14%, but a year later, the country saw 11.33% growth as a result of the rebound.
Changes in selected macroeconomic indicators in Chile between 2020 and 2024 (expressed as percentages)
In addition to copper and lithium mining, agriculture also plays an important role in Chile’s economy. The northern part of the central region of the country is used for livestock farming, while the south is used for traditional agriculture. Cattle and sheep farming are significant in livestock farming, while agriculture involves a wide range of crops, fruits, and vegetables. Sugar cane and fruit production are significant in the country, and thanks to its advanced viticulture and wine production, Chilean wines are well known abroad. In addition to mining, the country’s industry is dominated by sectors focusing on the production of food, iron and steel, wood, vehicle manufacturing, and construction products.
The country’s foreign trade-oriented economy relies on three areas: copper mining, fishing, and fruit exports within agriculture. Based on 2024 export data, copper ore exports accounted for more than 30% of Chile’s total exports. China is the largest buyer, accounting for more than 65% of copper exports in 2024.
Thanks to the free trade agreement between the EU and Chile, 98% of EU exports (including Hungarian exports) enter the country duty-free. The agreement is currently being modernized, which is expected to result in further simplifications.
According to the 2024 World Investment Report published by UNCTAD, Chile ranked 20th in the world investment rankings based on FDI inflows, with total foreign direct investment reaching USD 267 billion at the end of 2024. Chile is considered one of the strongest investment destinations in Latin America, and the country has also made progress in improving its business environment in recent years. With the election of José Antonio Kast, a political ally who may be able to catalyze economic and trade processes has taken the presidential seat, which could lead to an increase in the number of free trade agreements and, consequently, an increase in the country’s exports.
Hungary and Chile established bilateral relations in 1965, but these were suspended until 1973 due to a military coup. They were only restored in 1990, and the Hungarian government reopened the embassy in Santiago, which had been closed in 2009, in 2014, in line with its Southern Opening policy.
High-level meetings between Chile and Hungary have also intensified since 2010: on the Hungarian side, László Kövér, Speaker of the National Assembly, visited Chile in May 2015, while Foreign Minister János Martonyi visited the country in 2014 and Minister of Foreign Affairs and Trade Péter Szijjártó in 2015. Edmundo Eluchans Urenda, President of the Chamber of Deputies, visited Budapest in January 2014. Marco Antonio Núñez Lozano, President of the Chilean Chamber of Deputies, reciprocated László Kövér’s visit between October 28 and 30, 2015.
Hungary has a significant surplus in foreign trade with Chile, with machinery and equipment, medicines, vehicles and animal feed accounting for the largest share.
With a view to developing economic relations, Hungarian businesspeople re-established the Chilean-Hungarian Chamber of Commerce in Santiago in 2013, which cooperates with the Hungarian Chamber of Commerce and Industry and the Budapest Chamber of Commerce and Industry.
Change in the value of Chilean foreign trade between 2020 and 2024 (in millions of USD)
Overall, Hungarian-Chilean cooperation still offers many opportunities that have not yet been exploited. Despite the geographical distance, the Chilean market is open to European companies, and its developed economy and stable financial system may serve as further reasons to stimulate foreign capital investment. By broadening Hungarian-Chilean intergovernmental cooperation, Hungary’s foreign policy strategy provides new opportunities for closer ties with countries in the southern hemisphere.
Via X, Oeconomus; Featured image: X/Orbán Viktor
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