Chile’s IMACEC Surprise Slowdown Shakes Growth Outlook

Chile’s IMACEC economic activity index grew 1.2% year-on-year, slowing sharply from the previous 2.2% pace. The 1.0 percentage point deceleration represents a drop of around 45% in the growth rate, signaling a clear loss of momentum in overall economic activity.

The 1.2% reading also undershot the 2.3% analyst estimate, a downside surprise that is likely to pressure Chilean equities, particularly domestically focused sectors such as retail, banks, and consumer services that are sensitive to growth expectations. Exporters and defensive sectors may hold up better as investors reassess the macro outlook. The immediate impact centers on sentiment, but the weaker activity print also strengthens expectations for a more growth-supportive monetary policy stance over the medium term.