At US$10,797 million, foreign direct investment (FDI) in Chile in 2019 was up by 78% on the previous year. This was its second consecutive year of growth, after a 4% increase in 2018 (US$6,082 million), and the total for the year was close to the annual average for 2015-2019 (US$11,185 million).
According to figures published this morning by the Central Bank of Chile, net FDI in December reached US$181 million.
“The past few months have not been easy ones but, even so, foreign investment showed important growth last year. This is a clear sign that, despite the events of recent months, investors have confidence in our country. From all different parts of the world, they have noted that we are following the institutional road, the democratic road, to channel citizens’ demands. This is a guarantee that few countries can offer; it’s a guarantee of more companies deciding to come to Chile each year,” said the Minister of Economy, Economic Development and Tourism, Lucas Palacios.
He emphasized that, this year, the government will be seeking to maintain the high levels of FDI achieved because “each job created by each new project means not only that the country progresses, but also that a family progresses.”
The director of InvestChile, Cristián Rodríguez, indicated that the figures are in line with the results of the agency’s portfolio of projects in 2019 when it grew by 31% to US$18,448 million. “The figures announced today by the Central Bank and the results of our portfolio confirm that foreign investment in Chile has not declined but, despite international turbulence, has shown two consecutive years of growth,” he said.
“The Agency will continue with its proactive promotion work and will reinforce its work with overseas companies already installed in Chile since they create more than 50% of the jobs related to foreign direct investment,” said Rodríguez.
The inflow of FDI in 2019 was mainly explained by equity contributions, which reached US$6,821 million, accounting for 63% of the total inflow and representing an increase of 236% on 2018. Reinvested profits, at US$3,263 million, accounted for 30% of the total and related borrowing, at US$713 million, for the other 7%.
In March, the Central Bank will update FDI figures when it publishes its National Accounts.