Chile’s Consumer Confidence Plummets Amid Power Cuts and Trade Fears

Chile’s consumer confidence craters to its lowest since July 2024, reveals the Ipsos Consumer Confidence Index, dropping 4.6 points to 40.8 in March 2025.

This marks the first decline this year, plunging the nation into pessimism after a massive power outage disrupts 14 regions on February 25. Nicolás Fritis, Ipsos Chile’s country manager, blames the blackout for exposing fragility, shaking public trust.

The outage compounds other woes as Chile ranks fifth in OECD unemployment, while U.S. President Donald Trump probes copper imports for tariffs. Meanwhile, January’s economic activity grows 2.5% annually, but February’s 0.4% price hike pushes inflation to 4.7%, straining wallets.

These factors fuel the second-steepest global CCI drop, behind Indonesia’s 5.7-point fall, sliding Chile to 25th of 29 nations. Fritis notes that March typically brings seasonal costs, yet this 4.6-point plunge outstrips past trends, reflecting deeper unease.

Investment and economic situation sub-indices both shed 5.5 points, hitting 35.8 and 30.8, while only 26% feel secure investing. Jobs dip 3.2 points to 43.6, and economic expectations fall 3 points to 55, signaling broad concern.

Beyond the blackout, Chile grapples with a 60% electricity tariff hike since June 2024 and unemployment woes in construction. Growth hovers at 2-2.5% for 2025, per IMF forecasts, but inflation lingers above the 3% target into 2026.

Fritis ties this gloom to local disruptions and global trade risks, erasing summer optimism.
This sharp decline, outpacing last year’s 1.4-point gap, worries businesses eyeing Chile’s stability.

Observers watch if this slump deepens or fades, as consumers tighten belts amid uncertainty. The story behind the numbers reveals a nation rattled by power cuts, job fears, and trade shadows.