Chile

Full-year 2025 foreign direct investment into Chile reached USD 14.5 billion, with the largest component of the 2024 FDI flow being profit reinvestment at USD 10.1 billion, followed by equity investments at USD 4.2 billion and debt-related investments at USD 912 million. The Kast administration, which took office on 11 March 2026, has signalled a pro-market policy pivot—including a critical minerals cooperation memorandum with the United States and consolidation of the economy and mining portfolios—intended to accelerate investment attraction, though a minority congressional position constrains the pace of structural reform.

Rio Times Online / Santander Trade · 2026-05-16

Cochilco (Chile's state copper commission) projects sector-wide mining capital deployment of up to USD 105 billion through 2034, underpinning the long-term FDI structural story. However, near-term output headwinds—including a 3.1% mining contraction in Q1 2026 attributable to lower ore grades, adverse weather, and maintenance shutdowns—may temper short-cycle investment commitments in the copper segment.

Rio Times Online / Trading Economics · 2026-05-18

The Codelco-SQM joint venture NovaAndino Litio, completed in December 2025, positions the Chilean state to capture up to 85% of Atacama lithium operating margins from 2031 onward; April 2026 lithium carbonate exports reached USD 498 million, up 175% year-on-year, signalling accelerating investor interest in the lithium value chain. Regulatory reforms aimed at streamlining permitting are cited by Allianz Trade as a mechanism to attract over USD 15 billion in private investment in 2026.

Rio Times Online / Allianz Trade · 2026-05-08

Chile's April 2026 total exports rose 7% year-on-year to USD 9.718 billion, with mining shipments up 14.1% to USD 5.963 billion, according to Banco Central data released 7 May 2026. The trade surplus narrowed sharply to USD 1.912 billion from USD 3.061 billion in March, reflecting rising oil import costs as Brent crude exceeded USD 100 per barrel amid Middle East geopolitical tensions, compressing the external buffer.

Rio Times Online · 2026-05-08

Chile's upgraded European Union–Chile Interim Trade Agreement (ITA), which entered into force in February 2025, prohibits data localisation requirements, commits Chile to no export restrictions toward the EU on raw materials, and mandates joint sustainable mining standards aligned with EU Environmental Impact Assessment norms. The agreement also ensures national treatment for EU investors and lays the groundwork for an Investment Court System under the forthcoming Advanced Framework Agreement (AFA).

European Commission · 2026-05-23

Chile's Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has been in force since February 2023, and the Pacific Alliance–Singapore Free Trade Agreement entered into effect on 3 May 2025, further extending Chile's preferential trade network to 64 economies representing approximately 86% of global GDP. Negotiations on a new Comprehensive Economic Partnership Agreement with India were ongoing as of May 2025, building on the existing preferential trade agreement.

U.S. International Trade Administration · 2026-05-23

Chile's economy contracted 0.5% year-on-year in Q1 2026, missing a consensus forecast of +0.1% expansion, with declines recorded in agriculture and forestry (–5.4%), mining (–3.1%), manufacturing (–2.0%), and fishing (–18.6%); personal services (+2.4%) provided the sole meaningful positive contribution. This follows full-year 2025 GDP growth of 2.5%, and the Banco Central de Chile's March 2026 Monetary Policy Report narrowed its 2026 forecast range to 1.5%–2.5%, while the IMF's April 2026 World Economic Outlook projects 2.0% and the Finance Ministry targets 2.4%.

Trading Economics / Bloomberg · 2026-05-18

Finance Minister Jorge Quiroz stated on 9 May 2026 that the Kast government expects growth slightly above 2% in 2026 as it pursues pro-investment reforms and executes a USD 6 billion spending cut, while acknowledging short-term economic pain from elevated fuel prices. The government's medium-term target of 4% growth by 2030 is contingent on passage of a corporate tax megareform—including a reduction from 27% to 23%—which faces significant congressional headwinds given the administration's minority position.

Bloomberg · 2026-05-09

Public debt has risen from 28% of GDP pre-2019 to 42.7% in 2025, narrowing the buffer to Chile's 45% fiscal rule ceiling, while the structural deficit stood at approximately 2.1% of GDP in 2025. Allianz Trade projects inflation converging to the Banco Central's 3% target by 2026 after peaking at 4.5% in 2025 due to electricity tariff adjustments, with unemployment edging down to 8% but labour market informality and sectoral disparities persisting.

Rio Times Online / Allianz Trade · 2026-05-16

Chile's labour reform under Law No. 21,561 reached a key implementation milestone on 26 April 2026, reducing the statutory working week from 44 to 42 hours as part of a phased reduction from 45 to 40 hours over five years. The 2026 phase introduces more structured working-time controls and heightened digital traceability requirements, with the Labor Directorate increasing expectations around electronic attendance systems as a central pillar of compliance rather than an operational tool.

Activpayroll · 2026-05-16

As of May 2026, Chile's joint Constitutional and Economy Senate commissions are deliberating on the confirmation of three Directive Council nominees for the Agencia de Protección de Datos Personales (APDP), the new data protection authority created under Ley 21.719, with full enforcement commencing 1 December 2026. The law carries extraterritorial reach—applying to controllers and processors outside Chile that offer goods or services to Chilean data subjects—and moves enforcement from a judicial to an administrative framework with fines of up to 10,000 UTM for serious infringements.

Recording Law · 2026-05-20

New legislation creating a regulatory framework for desalination in Chile was reported on 18 May 2026, with the potential to accelerate project licensing; Chile's installed desalination capacity is expected to grow 30% in 2026. Concurrently, the Comisión para el Mercado Financiero (CMF) published a major banking governance regulatory proposal in January 2026—open for public consultation until 29 April 2026—integrating Basel Committee principles and Financial Stability Board recommendations into updated Recopilación Actualizada de Normas (RAN) chapters, including the creation of Chapter 21-15 on recovery planning.

BNamericas / Chambers and Partners · 2026-05-18