Chile regional GDP falls in seven areas in Q2

Chile's gross domestic product contracted by 0.2% in the second quarter, driven by output drops across seven regions according to the Central Bank of Chile. The northern macrozone weighed most heavily on national activity due to reduced copper mining. Across the country, three regions entered technical recession with two consecutive quarterly contractions, while three others recorded declines for three or more straight quarters.

Antofagasta recorded the steepest drop in the country at 6.3%, marking its fourth straight quarterly decline due to copper mining and construction. Arica y Parinacota contracted 4.9% following a 1.4% decline in the first quarter, entering technical recession due to lower fishing and construction. Tarapacá fell 4.5% on mining and construction weakness after a 6.3% rebound in the prior quarter. In contrast, Atacama decoupled from the northern trend to post the highest growth nationwide at 8.3%, boosted by gold and silver extraction.

In the central and south-central zones, the Santiago Metropolitan Region expanded 1.6% on gains in commerce and personal services, while Valparaíso grew 1.7%, Coquimbo advanced 0.9%, Maule rose 0.7%, and Ñuble gained 1.1%. Offsetting those increases, O'Higgins fell 4.2% for its fourth consecutive quarterly drop due to copper mining, and Biobío fell 3.0% after a 4.6% drop in the first quarter.

In the southern zones, Los Ríos grew 1.6%, Los Lagos advanced 1.1%, and La Araucanía gained 0.7% to avert a technical recession after falling 2.6% in the first quarter. In the austral zone, all regions contracted: Aysén shrank 4.2% after a 1.7% drop in the prior quarter, entering technical recession, and Magallanes dropped 1.9% for its third consecutive quarterly decline, both hit by lower aquaculture and construction.