Key facts
- Chile's economic activity fell 1.2% year-on-year in April.
- This is the fourth consecutive month of year-on-year contraction.
- Mining activity decreased by 11.8% year-on-year.
- The non-mining economy grew by 0.4% year-on-year.
- Manufacturing contracted and services growth was soft.
Chile's economic activity contracted by 1.2% year-on-year in April, a steeper decline than economists had forecast. This marks the fourth consecutive month of year-on-year contraction, signaling persistent weakness in the South American economy. The downturn was largely driven by a significant slump in mining activity, which fell by 11.8% year-on-year, primarily due to struggles in the copper sector. The non-mining economy showed some resilience, growing by 0.4% year-on-year, but this was tempered by a contraction in manufacturing and soft growth in services. Analysts are likely to revise down their full-year growth forecasts for Chile, potentially below 2.0%, which could lead to a more accommodative stance from fiscal and monetary authorities.