Chile Finance Minister Jorge Quiroz says economy hit turning point, rejects recession

Chile's Finance Minister Jorge Quiroz told reporters that the country passed a “point of inflection” in June, signaling a shift toward growth in the second half of 2026. He said the positive trend is supported by the upcoming Reconstruction and Economic Development Law, a resilient copper price and expected increases in private investment. Quiroz dismissed fears of a technical recession, noting that the latest tax‑revenue data and a projected Imacec (monthly activity index) for June should be positive.

The economy has posted five consecutive months of negative Imacec readings, with May down 0.9% and unemployment at 9.4% for the March‑May quarter. Analysts acknowledge the weak performance but differ on the outlook: some warn that the country is close to a technical recession, while others expect June’s Imacec to rebound to around 2.5% and forecast annual growth above 3% for 2027. The debate also touches on recent fuel‑price subsidies, which the minister defended as fiscally responsible despite a marginal impact on consumption.

Overall, the government is banking on the reconstruction law, mining activity, and higher investment to revive employment and lift the economy out of its current stagnation.