September 13, 2021
Investment

Chile’s foreign investment continues its record-breaking streak: historic figure in July outstrips 2020 FDI by 74%

Chile’s foreign investment continues its record-breaking streak: historic figure in July outstrips 2020 FDI by 74%
According to figures from Chile’s Central Bank, the cumulative figure for the first seven months of this year was US$14.8 billion, the highest figure for this period since records began.

Foreign investment in Chile continues to be very dynamic. According to figures provided this morning by Chile’s Central Bank, the country received a net flow of foreign direct investment (FDI) totaling US$14.8 billion during the first seven months of 2021. This figure, up 57% on that recorded in 2020, is also the highest for the 2003-2021 period and is 74% higher than the total FDI of US$8.5 billion that Chile received in 2020.

InvestChile Managing Director Andrés Rodríguez said that foreign investment in Chile has remained dynamic, despite the international uncertainty generated by the pandemic. He added that this is great news for the country, because it will contribute to economic recovery and job creation. Mr. Rodríguez also indicated that global FDI flows fell by 35% in 2020 and are now showing signs of recovery, with forecasts for international growth of 10%-15%.

“This amount confirms that foreign investors remain confident in Chile and are continuing to choose our country for their projects. This confidence goes beyond foreign investment flows, which are dynamic and can vary significantly from one month to another. It is in

response to the investment-friendly environment that Chile has been developing over the years and InvestChile is part of this,” Mr. Rodríguez added.

“These figures show the interest in investing in Chile, as our country has been resilient in addressing the pandemic, achieving economic recovery and carrying out its social and political processes in an institutional manner. This is a powerful sign, because our economy will recover with even greater strength as foreign investors continue to show that Chile is a country that can be trusted. More and better investment means more and better jobs for Chilean families and greater certainty for those who have placed their confidence in our country,” Economy Minister Lucas Palacios emphasized.

The most significant components of the cumulative FDI flows during the first seven months were shares in equity capital of US$8.2 billion, followed by reinvested earnings of US$5.4 billion and finally debt instruments of US$1.1 billion.

It must be emphasized that the portfolio of projects managed by InvestChile also reveals the dynamism of foreign investment in Chile. At the close of the first half of this year, the total for the projects listed had grown by 28% to US$24 billion, compared to the US$18.7 billion registered on the same date in 2020.