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Foreign investment in Chile up by 68% in the first five months

Between January and May, the inflow reached US$7,696 million.   

In the first five months of the year, Chile received US$7,696 million in foreign direct investment (FDI), according to preliminary figures released this morning by the Central Bank of Chile. This represented an increase of 68% on the same period in 2019 when the inflow reached US$4,489 million. It was also 31% up on the average for the past five years and 29% up on the average for the period since comparable records began (2003-2020).

According to the Central Bank, there was an inflow of US$540 million in May.  

The acting director of InvestChile, Juan Araya, noted that the figures indicate that the flow of foreign capital to Chile remains healthy, despite the international economic crisis caused by the Covid-19 pandemic. “The ongoing growth of foreign investment, in a situation such as we are currently experiencing, is extremely important. Certainly, it will be necessary to monitor the figures carefully in the coming months, but these figures are good news, confirming that foreign investors maintain their confidence in Chile and continue to see our country as an alternative for the development of their projects and reinvestment,” said Araya.   

The most important component of FDI in January-May was equity, which represented an inflow of US$3,943 million. It was followed by reinvested earnings (US$2,349 million) and related borrowing (US$1,404 million). For Araya, the ongoing dynamism of both equity and the reinvestment of profits is an important signal. “It shows that new overseas companies are trusting Chile and that companies already operating in the country are maintaining their operations in the midst of a complex international economic situation,” he pointed out.

“We must not forget that, as well as boosting the economy, foreign investment is important in creating jobs. Our duty, as the Foreign Investment Promotion Agency is, therefore, to work so that investors can continue to develop their projects and create new jobs for Chilean men and women, helping them to overcome difficult times and facilitating recovery once the health emergency passes,” Araya stressed.      

InvestChile reiterated that it is not possible to forecast investment flows over the coming months in a context in which UNCTAD has indicated that global flows may contract by between 30% and 40% this year.