started · updated
Chile enters technical recession as mining sector declines
Chile has entered a technical recession following a 0.2% year-on-year contraction in GDP during the second quarter of 2026. The decline is primarily attributed to a 6.4% drop in the mining sector due to maintenance and lower mineral grades, while non-mining GDP grew by 0.7%.
Despite the contraction, officials note that seasonally adjusted quarterly figures remained at 0%, suggesting economic stabilization. The Ministry of Finance reported that the effective fiscal deficit for 2026 is projected to reduce from 2.4% to 2.0% of GDP, supported by increased revenues from copper and lithium, alongside stricter spending controls. The gross debt is expected to reach 42.7% of GDP.
Economic analysts highlight that while the mining slump and a 3.2% drop in construction have weighed on growth, internal consumption has shown resilience, growing by 1.2% in households. Projections for annual growth remain around 1.8%, contingent on the normalization of copper production and the continued dynamism of the lithium market.
Entities
Andrés Solimano · Carlos Smith · Central Bank of Chile · Chile · Codelco · JPMorgan · Ministry of Finance
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Purchases of machinery and equipment increased by 3.7%. www.latercera.com
- [○ 1 SOURCE] The economy may be in a technical recession with two consecutive quarters of negative growth. radionuevomundo.cl
- [○ 1 SOURCE] Real gross national disposable income grew by 1.3%. www.latercera.com
- [○ 1 SOURCE] Non-mining GDP grew by 0.7%. www.latercera.com
- [○ 1 SOURCE] The construction sector fell by 3.2%. www.latercera.com
- [○ 1 SOURCE] Mining activity decreased by 6.4%. www.latercera.com
- [● 2 SOURCES] GDP fell by 0.2% in the April-June 2026 quarter. radionuevomundo.cl · www.latercera.com