In the first quarter of this year, Chile received US$6,477 million in foreign direct investment (FDI), according to figures released by the Central Bank of Chile. This represented an increase of 176% over the same period last year when the inflow reached US$2,346 million. In March, there was an inflow of US$1,698 million.
The figure is the second highest for the first quarter since comparable records began in 2003. It is 47% higher than the average for the past five years (US$4,415 million) and 53% higher than the average for the historical series (2003-2020).
The head of the Investment Promotion Division, Ian Frederick, highlighted that the inflow of FDI has remained positive despite the impact of the Covid-19 pandemic on both global trade and investment. “In the midst of the complex situation internationally, it is certainly good news that foreign investment in Chile continues to grow, especially because investment will be fundamental for the recovery of the economy and jobs once the health emergency passes,” he said.
“The outlook for investment is challenging and, at InvestChile, we are working so that overseas companies can continue with their projects or investment plans in our country when the situation normalizes,” he added.
The most important component of FDI in the first quarter was equity which reached US$3,530 million, followed by reinvested earnings (US$1,833 million) and related borrowing (US$1,114 million).