Chile’s Technical Recession Depends on Which Measure You Use
Two standard definitions give two answers for Chile. The central bank never used the term, and the finance minister rejects it. The figures behind the argument. The post Chile’s Technical Recession Depends on Which Measure You Use appeared first on The Rio Times .
Chile's economy has fallen into a technical recession, but the classification depends on the measurement method used. Two different approaches yield contrasting conclusions about the country's economic status. National accounts for Q2 revealed a 0.2% decrease in output compared to the same period in 2025, marking a shift from the previous quarter's 0.5% decline.
This data aligns with the common definition of a technical recession, which requires two consecutive quarters of decline. However, an alternative metric that strips out seasonal variations shows no decline in the second quarter, casting doubt on the recession diagnosis. The central bank's own terminology avoided using the term "recession" in their reports, stating that activity showed no variation compared to the previous quarter.
Finance Minister Jorge Quiroz firmly rejected the technical recession label, emphasizing that there was no decline in the second quarter. On the other hand, former central bank governor Rodrigo Vergara supports the recession classification for the first half of the year. Economists are divided, with figures pointing towards a potential negative third quarter as well.
The debate hinges on whether the first half of the year constitutes a dip or the early stages of a more prolonged economic downturn.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
