Chile Economy Unexpectedly Contracts in Q1

Chile’s economy contracted 0.5% year-on-year in the first quarter of 2026, missing forecasts of a 0.1% expansion. The weaker GDP performance was mainly driven by declines in agriculture and forestry, mining, manufacturing, and fishing, while personal services provided the main positive contribution. Agriculture and forestry activity fell 5.4%, largely due to lower fruit production, while mining contracted 3.1% amid weaker copper output caused by lower ore grades, adverse weather conditions, and maintenance shutdowns. Fishing activity plunged 18.6% due to lower fish landings. Manufacturing output declined 2.0%, mainly reflecting weaker food production tied to reduced fishing resources. In contrast, personal services grew 2.4%, supported by health and education services.

Chile’s economy grew 1.6% year-on-year in Q4 2025, slowing from 1.7% in Q3 and slightly below the 1.7% forecast. Trade led growth at 7.2%, personal services were up 3.3%, transportation up 1.9%, and manufacturing up 1.8% , supported by food processing and metal products. Agriculture and livestock rose 0.3%, and construction grew 1.5%. Meanwhile, mining fell 6.2% on weaker copper output and utilities dropped 3.5%. For the full year 2025, economic activity expanded 2.5% year-on-year, reflecting strength in domestic demand fueled by both investment and consumption.

Chile’s economy grew 1.6% year-on-year in Q3 2025, slowing from 3.3% in the previous quarter and below expectations of 1.9%. Trade rose 5.8%, amid wholesale gains in machinery, equipment, raw materials, food, beverages, and tobacco, along with stronger retail and e-commerce sales. Business services increased 4.2%, supported by higher demand for architectural and engineering services from the mining sector. Personal services grew 3.4%, led by health and education. Transportation expanded 3.6%, while manufacturing rose 1.7%, boosted by food processing and metal products. Agriculture and livestock increased 4.7%. Construction grew 0.8%, with engineering works offsetting declines in building. In contrast, mining fell 6.5% on weaker copper output, and utilities dropped 4.4% amid lower electricity generation.