world-economy

Chile's Economy Contracts as Joblessness Hits Five-Year Peak

Chile's economic activity unexpectedly declined in May, marking a deepening contraction that has pushed unemployment to its highest level in five years. The downturn is fueling talk of interest rate cuts as the labor market weakens. Market observers say the Central Bank faces a balancing act between supporting employment and maintaining price stability. Investors are closely monitoring whether rate cuts will emerge in coming months as policymakers weigh recession risks against inflationary pressures.