December 10, 2019

Foreign direct investment increases by 64% to US10,325 million in first ten months

Foreign direct investment increases by 64% to US10,325 million in first ten months
In October, the net inflow of foreign direct investment reached US$850 million.

At US$10,325 million, foreign direct investment (FDI) in Chile in the first ten months of this year represented an increase of 64% on the same period last year and was in line with its performance over the past five |years (an average of US$10,584 for 2015-2019). According to the Central Bank of Chile, there was a net inflow of US$850 million in October.

The figure reflects a high level of equity contributions, which reached US$6,043 million in the first ten months, accounting for 59% of FDI in the period. The director of InvestChile, Cristián Rodríguez, pointed out that equity contributions to October were 72% above their historical average. “We will be monitoring the evolution of this component over the coming months in light of the economic situation in Chile and internationally,” he said.

Out of total FDI to October, reinvestment of profits accounted for 32% (US$3,310 million) and related borrowing for 9% (US$973 million).

Caution is required when forecasting FDI figures since, as Rodríguez recalled, these have varied widely in recent years and do not necessarily mark a trend for subsequent years. “It is a good sign that foreign investment did not fall in October and that the figures remain positive despite events in Chile. We will continue to work so that investors maintain the confidence they have shown in Chile as a destination for their investments during the past 30 years,” said the director of InvestChile.