Chileans have voted overwhelmingly to reject a new constitution, dealing a blow to President Gabriel Boric and bringing relief to investors, who had feared the changes would upend the country’s pro-market economic model.

Only 38 per cent backed the proposals in a mandatory plebiscite on Sunday, in which nearly 13mn Chileans participated, compared with the 8mn in the second round of last year’s presidential election.

Boric’s leftwing coalition had been banking on the new constitution to introduce a progressive reform agenda across tax, pensions and social welfare.

The president recognised the result but pledged to launch a renewed effort to rewrite the charter, saying the vote provided a clear mandate to do so.

“I’m sure all this effort won’t have been in vain because this is how countries advance best, learning from experience and, when necessary, turning back on their tracks to find a new path forward,” he said in a televised address.

The government was also expected to announce a cabinet shake-up on Monday.

Many Chileans view the current constitution as illegitimate because it was drawn up during the dictatorship of General Augusto Pinochet, even though it has been heavily modified since his rule ended in 1990.