Chile GDP Falls Unexpectedly in Q2

Chile’s economy contracted 0.2% year-on-year in the second quarter of 2026, missing forecasts of a 0.2% expansion. The weak GDP performance was mainly driven by a 6.4% decline in mining, with copper mining falling 10.5%. Fishing (-5.9%), construction (-3.2%), transport (-0.6%), agriculture and forestry (-0.3%), manufacturing (-0.3%) and public administration (-0.2%) also contracted. Meanwhile, utilities output rose 1.7%, commerce, restaurants and hotels expanded 2.0%, retail services increased 2.3%, personal services rose 2.4%, financial and business services grew 0.6%, and communications and information services increased 0.2%. Non-mining GDP expanded 0.7%. Overall GDP was unchanged quarter-on-quarter after declining 0.3% in the first quarter of 2026.

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.