Central Banks

Chile Economy Shrinks Despite Investor Optimism Over Kast Government

Operations at a mine in Machali, Chile. — Operations at a mine in Machali, Chile.
Photographer: Cristobal Olivares/Bloomberg

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By Matthew Malinowski

May 18, 2026 at 12:48 PM UTC

Updated on

May 18, 2026 at 1:40 PM UTC

Lea en español

Chile’s economy contracted in the first quarter even as market-friendly proposals from the nation’s new President Jose Antonio Kast stoked investor optimism.