Chile’s Economy Grows 2.4% Driven by Copper, Despite Manufacturing Decline

Original article: El cobre vuelve a salvar la foto: Imacec crece 2,4% mientras la industria manufacturera cae

The Monthly Economic Activity Indicator (Imacec) for June 2026 reported a growth of 2.4% compared to the same month last year, primarily driven by mining performance, contrasting with the contraction seen in the manufacturing sector.

This figure exceeded the Central Bank’s expectations, which had projected a 1.2% growth, marking the end of five consecutive months of negative economic activity in the country.

The seasonally adjusted series, which allows for a clearer view of the trends, also displayed a 0.6% increase compared to the previous month and a 1.4% annual rise.

The main engine of June’s results was mining, which saw a year-on-year increase of 9.8%, solidifying its position as the most dynamic sector and the key contributor to the positive Imacec performance. This rebound, directly linked to copper production, managed to offset the lackluster outcomes of other production areas.

However, the outlook was not uniform; while overall goods production grew by 3.9% due to mining’s boost, the manufacturing sector faced a 0.7% decline, primarily attributed to reduced seafood product output.

Additionally, trade and services played a complementary but essential role in shaping the final figures. The commercial activity recorded an annual increase of 5.4%, with all components performing positively. Wholesale trade was the key driver, supported by machinery and equipment sales. Meanwhile, retail saw strong performance in clothing, grocery stores, and online sales platforms, along with a vibrant automotive sector in sales and maintenance. Services, at the same time, grew by 1.7%, largely driven by personal services, particularly in health and education, followed by business services that also contributed to the result.

The seasonally adjusted analysis reinforces the narrative of growth led by mining, albeit with significant nuances. Adjusted goods production increased by 0.7% compared to May, again thanks to copper extraction, while non-mining Imacec showed a mere monthly variation of 0.1%. This data reveals that without copper’s contribution, national growth would be nearly negligible, underscoring the urgent need to diversify the productive matrix.

On the commercial front, adjusted figures were also favorable, with a 1.5% monthly increase led by wholesale trade, while services grew by 0.5% during the same period, driven by the business segment.

Decline in Manufacturing Sector

The performance of the manufacturing sector has become the main alert of the report, as its annual contraction indicates competitiveness and domestic demand issues that cannot be compensated by other sectors.

The June data reaffirms the trend of recent months, where copper production has remained the main factor that saves the economy and drives the country’s economic growth.

It is expected that the Central Bank will release the results of the Gross Domestic Product (GDP) performance for the second quarter, along with revisions for the first quarter, on August 18.