Chile’s gross domestic product showed no growth in the second quarter, missing market expectations for a 0.3% expansion and marking a modest improvement from a 0.3% contraction in the prior three months.
The central bank’s preliminary data released on Tuesday indicated that annual GDP declined by 0.2% in the period, falling short of economists’ forecasts for a 0.1% increase. The mining sector, a key driver of Chile’s economy, weighed on activity as copper production fell.
The central bank’s report highlighted the drag from mining, where output declines in the sector offset gains in other areas of the economy. Copper, Chile’s top export, has faced volatility amid global demand concerns and supply disruptions.
The flat reading follows a 0.3% contraction in the first quarter, suggesting a fragile recovery trajectory for Latin America’s fifth-largest economy. Analysts had anticipated a rebound as domestic demand and services sectors showed signs of stabilization.
The central bank’s data underscores the sensitivity of Chile’s economy to commodity price swings, particularly copper, which accounts for a significant share of export earnings. The central bank has maintained a cautious monetary policy stance amid inflation pressures and external headwinds.
