Foreign direct investment in Chile increased 46% year-on-year in the first two months of 2023

Foreign direct investment (FDI) in Chile increased 46 percent year-on-year in the first two months of 2023, with a total of Us$4.677 billion, the Ministry of Economy reported today, based on data released by the Central Bank.

The Ministry assured that “FDI flows remain positive”, which represents “good news”, considering “the challenging economic environment this year”.

According to the figures, the main component of the FDI flow in the period analyzed was the reinvestment of profits, with an accumulated record of US$2.981 billion.

Meanwhile, equity investments reached US$1.101 billion, and debt instruments US$595 million.

The Minister of Economy, Nicolás Grau, pointed out in this regard that the Government is working to attract more foreign investment to the country, promoting the developing industries of green hydrogen and lithium internationally.

“There is the deployment of investment attachés in five points globally to promote Chile as an investment destination in strategic countries,” said Grau.

According to the local agency that promotes investments abroad, InvestChile, the accumulated FDI figure as of last February is 10 percent higher than the average of the previous five years (US$4.26 billion).

In addition, last February’s FDI flow was above the average of the previous 12 months, with a total of US$2.999 billion registered that month.

The director of InvestChile, Karla Flores, highlighted that foreign investment in the South American country remains “healthy” with a “positive trajectory”; however, she assured that these flows are “extremely dynamic”.

In that line, she said, “It would be risky to make any projection”, given the global economic outlook that shows signs of contraction.

In 2022, FDI totaled US$17.105 billion, representing a 12 percent rise compared to 2021.

That amount was the highest since 2015 and one of the highest figures in the historical series from 2003 to 2022, excluding the mining boom from 2010 to 2015.

The Government previously highlighted that the Chilean economy had shown resilience, despite the onslaught of the pandemic and the economic crisis.

More: Chile news in English, every day from The Rio Times.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error