Chile Weak Growth Extended Through May

Chile's May economic activity fell by 0.9% yoy, missing expectations and highlighting broad economic weakness. The ongoing contraction supports a dovish outlook for the country's monetary policy.

Key Takeaways

• 1.Chile's monthly economic activity indicator (Imacec) declined 0.9% yoy in May, underperforming consensus expectations of -0.4%.
• 2.Economic weakness is broad-based, with mining activity serving as a primary drag while non-mining sectors show underwhelming growth.
• 3.The combination of a soft start to 2026 and labor market weakness increases the risks for a more dovish monetary policy stance.

Table of Contents

• Key Numbers (May)
• Details
• Disappointing Growth So Far in 2026
• We Do Not Anticipate Significant Demand Side Pressures on Inflation
• Disclosure Appendix

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