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Chile faces economic contraction and rising unemployment under Kast
Chile is experiencing an economic downturn seven months into President José Antonio Kast's term. The country's GDP fell by 0.3% in the third quarter of 2026, following a 0.2% contraction in the second quarter. Concurrently, the unemployment rate rose to 9.6% for the June-August 2026 quarter, marking a 1 percentage point increase over the previous year.
In response to the slowdown, the Kast administration launched a 1.3 billion Chilean peso investment program in late September. The plan aims to stimulate the economy through infrastructure projects, job creation subsidies, and business financing support. This follows Kast's initial austerity platform, which included a 3% cut in state expenses and corporate tax reductions.
The International Monetary Fund (IMF) has lowered its 2026 GDP growth forecast for Chile from 1.8% to 0.6%. Economic challenges are further compounded by an 8% decline in copper production from January to August compared to 2025, and inflationary pressures driven by rising fuel costs. Additionally, labor reports indicate a gap of 668,400 employed people compared to historical trends.
Entities
Chile · Câmara Mineira do Chile · INACAP · INE · Instituto de Políticas Públicas de la Universidad Andrés Bello · International Monetary Fund · José Antonio Kast · Marsh · Universidad Andrés Bello
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Kast's approval rating reached 30% according to Cadem Plaza Pública. contilnetnoticias.com.br
- [● 9 SOURCES] The IMF reduced its 2026 GDP growth forecast for Chile to 0.6%. www.acessa.com · fatopaulista.com.br · gazeta24h.com · www.nitronewsbrasil.com.br · paraonline.com.br · +4 more
- [● 9 SOURCES] The government launched a 1.3 billion Chilean peso investment program in late September. www.acessa.com · fatopaulista.com.br · gazeta24h.com · www.nitronewsbrasil.com.br · paraonline.com.br · +4 more
- [● 12 SOURCES] The unemployment rate in Chile reached 9.6% in the June-August 2026 quarter. www.acessa.com · fatopaulista.com.br · gazeta24h.com · www.nitronewsbrasil.com.br · paraonline.com.br · +7 more
- [● 10 SOURCES] Chile's GDP fell by 0.3% in the third quarter of 2026. www.acessa.com · fatopaulista.com.br · gazeta24h.com · www.nitronewsbrasil.com.br · paraonline.com.br · +5 more
- [● 9 SOURCES] President Kast's plan includes a 3% cut in state expenses. www.acessa.com · fatopaulista.com.br · gazeta24h.com · www.nitronewsbrasil.com.br · paraonline.com.br · +4 more
- [○ 1 SOURCE] There is a gap of 668,400 employed people compared to historical trends. noticias.unab.cl
- [● 2 SOURCES] Copper production from January to August was 8% lower than the same period in 2025. fatopaulista.com.br · www.spacemoney.com.br