Foreign direct investment (FDI) is showing clear signs of improvement in Chile. According to figures released this morning by the Chilean Central Bank, the cumulative net FDI inflow was US$7,681 million for the first six months of 2021. This is 90% of the total for 2020 of US$ 8,528 million, despite falling by 7% compared to the first half of last year.
The cumulative figure for the first half of this year is among the highest throughout the period from 2003 to 2021. The total of US$7,681 million is 30% higher than the average for the last five years and 16% higher than the average for the entire period from 2003 to 2021.
Mr. Andrés Rodríguez, InvestChile Director, said “This is another sign that foreign investment in Chile has not stopped. Despite the adverse conditions caused by the pandemic, foreign companies have continued to demonstrate their confidence in Chile by developing and expanding their projects. This is especially important while the economy is recovering, because this strengthens the economy and accelerates recovery of some of the jobs lost as a result of COVID-19.”
Investment for June was US$1,046 million, compared to US$1,442 million in June 2020, due to debt instruments registering a negative total of US$1,330 million. The other components are equity investments and reinvested earnings and these were positive.
InvestChile has just presented its report “The nature and effects of FDI in Chile”, where it describes the benefits that foreign investment brings to the country. The agency highlighted that 64,680 companies in Chile are financed with foreign capital, which represents 9.6% of all companies. The report mentions that foreign companies contribute 40% of annual production investment and 51.4% of total tax revenue. The report also mentions that foreign companies made 66.7% of the goods exported from Chile during 2019, and provided 85.3% of the services it exported.
The full document can be downloaded at www.investchile.gob.cl.