Chile Economy Contracts 0.3% in Q1 as GDP Misses Forecast Despite Kast Optimism

1 articles · Updated · Bloomberg · May 18

Chile’s gross domestic product fell 0.3% in January-March from the previous quarter, a deeper drop than the 0.2% contraction analysts had expected.
Central bank data released Monday also showed the economy shrank 0.5% from a year earlier, underscoring weakness at the start of 2026.
The contraction came even as investor sentiment had been buoyed by market-friendly proposals from newly installed President Jose Antonio Kast.
The figures suggest policy optimism has not yet translated into near-term economic momentum, leaving Chile’s recovery outlook under pressure.

Can President Kast's market-friendly reforms succeed when he lacks the congressional majority needed to pass them?

With copper prices hitting record highs, why is Chile's crucial mining sector actually shrinking and hurting the economy?