IMF Slashes Chile's 2026 Growth Forecast to 0.6%
The International Monetary Fund has lowered Chile's 2026 growth forecast to 0.6%, down from 2.4% in April. The same outlook projects unemployment rising to 9.5% and average inflation of 3.7%, above the central bank's 3% target. Chile, the world's largest copper producer, now faces one of South America's weakest 2026 forecasts.
The IMF's revised World Economic Outlook, issued on 13 October 2026, places Chile's 2026 expansion at just 0.6%, a steep reduction from April's 2.4% estimate. Its 2027 projection remains 2.6%. The same tables show joblessness increasing from 8.5% in 2025 to 9.5% in 2026 and 9.6% in 2027, while average price growth is expected to reach 3.7%, exceeding the central bank's 3% goal.
Chile, the top global copper supplier, is now seen posting South America's second-weakest 2026 result, ahead only of Bolivia, which the IMF expects to shrink by 3%. The downgrade comes as copper prices cool and domestic investment softens. The central bank is due to decide rates later in October, and the IMF has not detailed why it made such a large revision.
Count: First para: The(1) IMF's(2) revised(3) World(4) Economic(5) Outlook(6), issued(7) on(8) 13(9) October(10) 2026(11), places(12) Chile's(13) 2026(14) expansion(15) at(16) just(17) 0.6%(18), a(19) steep(20) reduction(21) from(22) April's(23) 2.4%(24) estimate(25). Its(26) 2027(27) projection(28) remains(29) 2.6%(30). The(31) same(32) tables(33) show(34) joblessness(35) increasing(36) from(37) 8.5%(38) in(39) 2025(40) to(41) 9.5%(42) in(43) 2026(44) and(45) 9.6%(46) in(47) 2027(48), while(49) average(50) price(51) growth(52) is(53) expected(54) to(55) reach(56) 3.7%(57), exceeding(58) the(59) central(60) bank's(61) 3%(62) goal(63). Second: Chile(64), the(65) top(66) global(67) copper(68) supplier(69), is(70) now(71) seen(72) posting(73) South