Chile Revises Growth Forecast Amid Economic Challenges

Chile's government has revised its 2026 economic growth forecast from 2.4% to 2.1% and increased its inflation expectations, largely due to a stagnant mining sector. The government also highlighted a significant accounting error by the previous administration. The economic updates were detailed in the latest quarterly public finances report.

Chile's government has announced a revision in its 2026 economic growth forecast, reducing it from 2.4% to 2.1%, while raising inflation expectations. The adjustment reflects challenges in the mining sector, which is anticipated to remain flat instead of the previously projected 2.7% growth.

President Jose Antonio Kast's administration also brought to light a substantial $10.5 billion accounting error in public debt calculations attributed to the former government. This revelation was part of the first quarterly public finances report released on Monday.

The report further predicts an average annual inflation rate of 3.7% for the current year, up from a previous estimate of 2.7%. Additionally, domestic demand is expected to grow by 2.6% in 2026, which is below the prior 2.9% prediction. The average copper price, a crucial export, is forecasted to reach $5.46 per pound in 2026 and $5.06 in the following year.