Chile’s Economic Contraction Eases Slightly in May, Year-on-Year Decline Narrows to 0.9%

Chile’s economic activity showed a modest improvement in May 2026, with the year-on-year contraction easing to -0.9%, up from a -1.2% decline recorded in April 2026. The updated data, released on 1 July 2026, indicate that while the economy remains in negative territory on an annual comparison, the pace of decline has slowed.

The figures compare each month’s performance with the same month a year earlier, highlighting that May’s result, though still a contraction, marks a smaller year-over-year drop than in April. This suggests that some of the downward pressure observed earlier in the second quarter may be stabilizing, even as overall activity remains weaker than a year ago.

Analysts and market participants will likely watch upcoming releases to assess whether May’s milder decline represents the beginning of a more sustained improvement in Chile’s economic trajectory or a temporary pause in a broader slowdown.