LatinNews Daily - 19 May 2026

*Chile’s central bank (BCCh) has announced that economic activity fell by 0.5% in the first quarter of 2026, as compared to the first quarter of 2025. It said this result was due “in large part” to foreign trade, which saw a drop in exports and an increase in imports. The Q1 result followed year-on-year GDP increases of 1.6% in the final quarter of 2025, 1.7% in the third quarter, and 3.7% in the second quarter. In seasonally adjusted terms, GDP was down 0.3% in the first quarter of the year as compared to the previous quarter. This follows a quarterly rise of 0.5% in Q4 2025 and a drop of 0.3% in Q3 2025. Mining activity was down by 3.1% in the first quarter in yearly terms and down 1.3% on the previous quarter, while the rest of the economy showed no variation in yearly terms and was down 0.1% quarter-on-quarter. Chile’s Economy and Mining Minister Daniel Mas responded to the results on social media, stating that “Chile cannot endure another year of stagnation and mediocrity” and noting that the 0.5% annual decrease in the first quarter of 2026 was “the worst quarterly performance since 2009”. Mas called on members of congress to approve President José Antonio Kast’s ‘plan of national reconstruction and economic and social development’, an economic mega reform that Kast’s government, which took office in March, says will put the economy back on track. Kast has stated the reform will help boost annual economic growth to around 4% at the end of his term in 2030, up from 2.5% in 2025.

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