Chile August Imacec Contracts 1.0% YoY, Deepening Recession Fears

Chile's August economic activity index fell 1.0% year-on-year, the worst in market expectations and the sixth negative month in eight, signaling a deepening slowdown. The contraction underscores the economy's reliance on extractive mining and adds pressure amid historically high unemployment. The data raises the likelihood of further monetary easing by the central bank, though the pace remains uncertain.