Chile’s gross domestic product fell 0.2% year-on-year in the second quarter of 2026, improving from a revised 0.3% decline in the previous quarter but missing market expectations for 0.1% growth. GDP was flat quarter-on-quarter, versus forecasts for a 0.3% increase. Mining contracted 6.4% year-on-year, weighing on the economy of the world’s largest copper producer. June copper output rose 5.2% year-on-year to 444,100 tonnes, but production for January through June fell 6.6% to 2.48 million tonnes. Escondida posted a 46% June increase, yet its first-half output declined 7%, while Codelco’s June production fell 4.8% and its first-half total dropped 10%. The Central Bank of Chile is expected to keep its policy rate at 4.5% at its September meeting and for 24 months, with weaker growth and recent disinflation reducing pressure to tighten. Declining ore grades, alongside rising demand from artificial intelligence data centers, electric vehicles, renewable energy and grid upgrades, underscore the structural challenge facing Chile and global copper supply.