Chilean Economy Minister Nicolás Grau said the figures are a “good sign for the Chilean economy,” as they reflect investor confidence in the country and help create more and better jobs.
Chile’s Central Bank reported this morning that between January and December 2022, Chile received US$17.10 billion in foreign direct investment (FDI). According to InvestChile’s analysis, this is 12% higher than total FDI over the same period in 2021, 36% higher than the five-year average of US$12.617 billion and 23% higher than the average for the 2003-2022 historic series (US$13.921 billion).
Equity participation was the leading component of FDI flow during the period, amounting to US$9.084 billion. Profit reinvestment followed, at US$6.664 billion, while debt instruments accounted for US$1.358 billion.
The figures published today are preliminary, and may be adjusted when the Central Bank conducts its next review on March 18.
A good year for foreign investment in Chile
Economy Minister Nicolás Grau commented that the figures are a “good sign for the Chilean economy,” as “higher foreign investment not only injects cash into the economy, it also contributes to the country’s development by installing new sustainable projects in the country, introducing new technologies and creating quality jobs for Chilean men and women.”
“The figures published by the Central Bank show that the Chilean economy is resilient. When choosing where to implement their projects, global companies focus on long-term results, and so it’s a good sign that foreign investment continues to grow in our country, because it speaks to their confidence in our economy and its future development. Our government will continue our efforts to attract sustainable, quality investment to the country, because its contribution to our economic recovery is crucial,” commented Minister Grau.
InvestChile Director, Karla Flores, highlighted that last year’s total was the highest since 2015 and one of the highest in the historic series (2003-2022), excluding the mining boom (2010-2015). Flores added that it also reaffirms investors’ willingness not only to maintain their holdings in the country, but also to expand existing operations. “We are looking at a long-term injection of capital and resources, given that 92% of the capital flow entering the country corresponded to new projects or the expansion of existing operations, and only 8% consisted of head office loans to their subsidiaries,”outlined Flores.
As for InvestChile’s plans for 2023, Flores affirmed that the agency will focus on attracting quality investment to markets classified as strategic, and will enhance that work with new Investment Attaché Offices in the United States, Germany, France, Italy and Canada, which will be added to the agency’s existing Investment Attaché Office in Japan.
“Undoubtedly, 2023 will be challenging for foreign investment, but we have reason to be optimistic: Chile has become an investment pole in Latin America, especially in terms of technology infrastructure and clean energies, sectors that we believe will continue to develop this year. All companies that want to contribute to our country’s sustainable development are welcome to implement their projects in Chile,” affirmed Flores.
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