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Foreign investment up 93% in the first nine months of the year

InvestChile Managing Director Andrés Rodríguez highlighted that the US$15.4 billion registered between January and September is 80% higher than the amount received during the whole of 2020.

 

Significant foreign direct investment (FDI) figures have been recorded for Chile in the first nine months of the year. In the January-September period, the country received a total net flow of US$15.4 billion, which represents an increase of 93% compared to the same period in 2020.

This overall increase comes despite having registered a negative flow of US$789 million in September (according to figures released by the Central Bank this morning). This month’s result was impacted by a fall in reinvested earnings at a negative figure of US$787 million. Nonetheless, the flow is higher than the figure recorded for the same month in 2020 (which reached a negative amount of US$1.4 billion).

Debt  instruments also dropped US$173 million in September. Equity shares were the only positive component in the month, reaching an increase of US$171 million.

“When we talk about foreign direct investment, rather than focusing on the behavior in a particular month, we need to look at the evolution over the entire year which, in this case, has been positive. The cumulative FDI as of the third quarter is the fifth highest figure since records began and 80% higher than the amount registered for the entire year of 2020,” explained InvestChile Managing Director Andrés Rodríguez. “It should be noted that normally at this time of year there are outflows of foreign currency because many companies send part of their profits to their headquarters – which partly explains the change in flow,” he added.

“Aside from the numbers, we at InvestChile are continuing to work hard to increase the quantity and quality of foreign investment. In October, we visited the United States to meet with tech companies in order to accelerate their establishment or expansion in Chile. And, in a few weeks, we will have a busy schedule in Europe, where we plan to promote Chile as a Latin American destination for doing business and investing, in sectors that range from green hydrogen to technological infrastructure,” Rodríguez stressed.