Chile: Economic activity contracts less quickly in March
Latest reading: Economic activity declined 0.1% in annual terms in March, following a 0.3% fall in the previous month and below market expectations.
Relative to the previous month’s data, the reading for non-mining improved in March (+0.9% in annual terms vs -0.3% in February). In contrast, the reading for mining worsened in March (-6.5% vs +1.0% in February).
On a seasonally adjusted month-on-month basis, economic activity was up 0.3% in March, following a 0.2% drop in the prior month.
In Q1 as a whole, monthly economic activity data points to a 0.2% contraction relative to the prior quarter, following 0.5% growth in Q4.
Panelist insight: On the economy’s recent performance and outlook, Itaú Unibanco analysts said:
“Weak activity tracking and additional short-term headwinds (energy costs and fiscal cuts) pose downside risks to our 2.1% GDP growth forecast for the year. […] We preliminarily see the April Imacec as being unchanged from its 2025 levels. While some of the slowdown may be attributed to transitory sector specific challenges (fishing), the broader economy has lost momentum.”