InvestChile, the Foreign Investment Promotion Agency, said that Chile received US$9.6 billion in foreign direct investment (FDI) between January and May this year, according to Central Bank figures. The cumulative figure is 60% higher than the historic average for 2003-2022 (US$6 billion) and 17% higher than the five-year average (US$$8.2 billion).
The Agency highlighted that in May 2022 alone, incoming FDI totaled US$1.8 billion, a figure far higher than the negative figure of US$648 million recorded for May 2021. The amount is also higher than the 12-month average of US$1.2 billion.
The flow for the first five months of the year is 11% lower than that recorded for 2021, when FDI reached US$10.8 billion, due to a high base of comparison triggered by the unusual flow of US$5.3 billion that entered in February 2021, related to acquisitions.
The most important component of FDI flow during the period was profit reinvestment, recorded at US$3.9 billion. Shares in equity capital totaled US$3.2 billion and debt instruments were recorded at US$2.4 billion.
Dynamic foreign investment
Economy, Development and Tourism Minister Nicolás Grau emphasized that the amount “shows that foreign investment has not stopped in Chile. However, there is still a lot of progress to be made in the area of investment and public-private coordination.” Minister Grau added, “these figures reveal Chile’s capacity – over and above one-off operations – to once again attract regular investment in amounts in excess of those we had prior to the pandemic. This reflects Chile’s image among not only investors but also the confidence of international companies in our medium- and long-term development and their interest in re-investing and expanding their operations in the country.”
Meanwhile, InvestChile director Karla Flores stated that “the figures are a good indication of the dynamism of foreign investment and corroborate the high-interest companies have in continuing to develop business in Chile. This is something we as an agency are constantly seeing. I especially welcome this result, given the context of high uncertainty in global markets. For us, it is an invitation to continue working to attract investment that will have a positive impact on the economy and especially on job creation,” she said.
