Chile's Economic Outlook: Growth and Copper Prices Drive Optimism for 2026

Chile's GDP is projected to grow between 2% and 3% in 2026 due to rising copper prices. This growth forecast surpasses previous estimates and follows a 2.4% expansion in 2023. The central bank has adjusted expectations for the neutral interest rate, reflecting continued economic optimism despite global risks.

Chile's economy is set to grow between 2% and 3% in 2026, buoyed by increasing copper prices, according to the country's central bank. This growth projection surpasses earlier estimates and follows a 2.4% expansion in 2023, highlighting Chile's strong economic trajectory amidst global uncertainties, as reported in the December Monetary Policy Report.

The central bank has adjusted its forecast for this year's GDP growth to fall within the midpoint of the previously estimated 2.25% to 2.75% range. The upward shift in the 2026 outlook from an earlier range of 1.75% to 2.75% reflects optimism in trade dynamics driven by copper, Chile's main export.

Additionally, the bank's board has revised the neutral interest rate prediction, setting a new range between 3.75% and 4.75% nominally, up from an earlier 3.5% to 4.5%. While the economic forecast remains positive, the central bank acknowledges significant international risks that could impact this outlook.

(With inputs from agencies.)