Central Bank revises Q1 GDP downward: economy contracted 0.5%

The Central Bank confirmed this Monday that the Chilean economy registered a contraction of 0.5% in the first quarter of 2026 compared to the same period the previous year. The figure, contained in the National Accounts report, is more negative than the -0.3% anticipated by the monthly Imacec indicators.

The decline was mainly explained by the performance of mining, which fell 3.1% due to lower ore grades, adverse weather conditions, and maintenance at copper operations. The agricultural-forestry sector dropped 5.4% due to lower fruit production, while fishing suffered the largest decline at -18.6%, affected by the low availability of sardines and horse mackerel.

In contrast, personal services contributed an increase of 2.4%, driven by private healthcare and higher education. Trade grew 1.4%, financial services 4.1%, and restaurants and hotels 2.5%.

Foreign trade, the decisive factor

From the expenditure perspective, the main element of the contraction was foreign trade: exports of goods and services fell 4.9%, while imports rose 2.0%. The decline in shipments of copper, cherries, and grapes contrasted with higher entries of electrical equipment, transportation, and crude oil, whose price increased due to the conflict in the Middle East.

Domestic demand grew 2.1%, with household consumption rising (2.5%) and investment advancing 3.2%. Real gross national disposable income increased 4.3%, favored by high copper prices. Gross total savings stood at 22.5% of GDP, with a national rate of 24.5% and external savings at -1.9%.

Balance

Despite the contraction, Chile ended the quarter with a positive external position, reflecting that terms of trade remain a factor of resilience amid a complex economic scenario.