Chile’s Banco Central this morning reported that the flow of foreign direct investment (FDI) received to February 2023 reached US$4.677 billion. This represents an increase of 46% compared to the same period in 2022. According to analysis carried out by InvestChile, the accumulated figure to February is 10% higher than the average for the last five years (US$4.26 billion).
The flow for February reached US$2.999 billion, an amount that is above the average of the last 12 months, which was US$1.826 billion. According to InvestChile, although the figure is within the expected range, it only represents the first two months of the year and should therefore not be used to project the behavior of foreign investment over the coming months.
The most important component of the FDI flow was the reinvestment of profits, with an accumulated total of US$2.981 billion. Equity holdings reached US$1.101 billion and debt securities reached US$595 million.
FDI flows remain positive
Economy Minister Nicolás Grau stated that it is great news that, at the beginning of this year, foreign direct investment figures remain positive, following the good results of 2022. He added that the government is working hard to attract more foreign investment to the country, taking into account this year’s challenging economic environment.
“To increase investment, the government has implemented several measures, including the deployment of investment commissioners in five places around the world. They join the already existing attaché office in Tokyo, in order to promote Chile as an investment destination in strategic countries. We have also implemented very intense agendas to promote specific sectors, such as green hydrogen and soon lithium,” Minister Grau explained.
The executive director of InvestChile, Karla Flores, stressed that the flows of foreign investment arriving in the country remain healthy. “The figure for February is positive and within an important range. In any case, it is important to remember that investment flows are highly dynamic. It would therefore be risky to make any projection, especially in a context in which international figures are showing signs of contraction due to the global economic situation. In any case, we are seeing that there is a positive trajectory in Chile, which is sustained by our country’s permanent capacity to attract foreign capital,” Flores stated.