Chile's Economy Slows Amid Copper Output Decline and Job Market Concerns
Chile's economy experienced a slowdown in July due to weather-related disruptions and weakened copper output. The country's copper production fell by 9.8% from June, reaching its lowest level since 2011 at 403,424 metric tons. This decline contributed to an overall drop in industrial production, which decreased by 5.1% year over year.
According to data published by the central bank, Chile's GDP remained flat in the second quarter following a 0.3% decline in the first quarter. The jobless rate rose to 9.5%, with female unemployment reaching 10.3%. Storms that swept through central Chile in July caused localized mining stoppages, including at Antofagasta Plc's Los Pelambres and Lundin Mining Corp's Caserones.
The copper slump has further weakened an already disappointing year for domestic supply. Economists have revised down growth expectations to near 1% for 2026 amid high unemployment, heavy rainfall, and fragile confidence following a large fuel price increase.