Chile's economy shrank year-on-year in May

The central bank of Chile reported that its economy contracted 0.9 percent in May 2026 compared to May 2025, according to the IMACEC index, the country's main indicator of economic activity.

The production of goods fell by 4.7 percent, the mining industry fell by 11.6 percent, and the manufacturing industry declined by 1.7 percent. Trade grew by 0.8 percent, while the service sector grew by 1.0 percent.

On a monthly basis, the IMACEC index fell 0.2 percent in May compared with April.

Over the same period, the production of goods increased by 0.1 percent, the mining industry grew by 0.2 percent, production fell by 0.1 percent, and trade grew by 0.2 percent, while services remained unchanged.

Kevin Cowan, an adviser to the Central Bank of Chile, told local media that the weak performance of the economy is largely due to disappointing results in the mining sector.

He expects a short-term recovery, underpinned by stronger investments and lower price targets in the coming months, which could help lower the annual inflation rate, which currently stands at 3.9 percent.

The IMACEC monthly Economic Activity Index tracks changes in Chile's gross domestic product. domestic product (GDP). It is released on the first business day of each month with a delay of about 31 days.

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