Chile Q1 2026 GDP Contracts 0.5% as Mining Output Falls 5.8% — First Negative Quarter Since Pandemic

Chile's GDP contracted 0.5% year-on-year in Q1 2026 — reversing sharply from +1.6% growth in Q4 2025 — driven by a 3.1% contraction in the mining sector and a 5.4% drop in agriculture and forestry output. Copper mine production fell 5.8% in Q1 (to approximately 1.21 million tonnes), with the largest declines recorded at El Teniente, El Abra, Spence, and Escondida. The Q1 data represents Chile's first negative quarterly GDP reading since the post-pandemic normalization period and arrives as President Kast's economic reactivation mega-bill advances through Congress. The IMF, in its May 2026 Article IV assessment, cut Chile's 2026 full-year growth forecast to 2.2% and warned that Kast's proposed corporate tax cuts 'won't pay for themselves,' flagging fiscal consolidation risks. The contraction heightens political pressure on Kast, whose approval had already fallen to 29–39% by early May amid fuel price hikes.