Chile's Economic Outlook: Navigating Inflation and Growth in 2026

Amid rising global fuel prices, Chile's central bank has adjusted its economic forecasts for 2026, reducing growth expectations and increasing inflation projections. The adjustments reflect ongoing economic pressures and result in a projected GDP growth range of 1.5% to 2.5% for the world's largest copper producer.

Previously anticipated to be between 2% and 3%, this revised growth outlook coincides with an inflation forecast adjustment from 2.9% to 3.6% for 2026. The bank expects inflation to align with its 3% target by the second quarter of 2027, acknowledging that current inflationary revisions are linked to the impact of war-driven global fuel price hikes.

Furthermore, the central bank has also revised its copper price estimates to $5.4 per pound in 2026, up from $4.7. For 2027, economic growth is projected to remain steady, mirroring the 2026 forecast of 1.5% to 2.5% growth.