• Investment in the form of equity reached US$5,178 million, its highest level since records began.

At US$9,115 million, foreign direct investment (FDI) in Chile in the first eight months of this year was up by 70% on the same period last year. According to the Central Bank of Chile, there was a net inflow of US$757 million in August.  The growth of FDI to August was led by equity which, at US$5,178 million, was up on its historical average, reaching the highest figure since records began (2003).

According to the director of InvestChile, Cristián Rodríguez, the robust growth of equity as a share of FDI is good news as it is a clear sign of a strong inflow of investment. “Overseas companies are betting on our country and this confidence shows that Chile is on the march. We are already seeing this in better economic figures and soon we will also see it in more and better jobs for our citizens,” said Rodríguez.

Thanks to the upward trend seen this year, accumulated foreign investment continues to exceed the average for the five years between 2015 and 2019 (US$7,093 million) and even the inflow received in 2018 when FDI closed at US$6,082 million. The net inflow of US$9,115 million in the first eight months represents a 29% increase on the 2015-2019 average.

“We are working to continue positioning our country as a safe destination for investment, with clear and homogeneous rules for all. Investors value these qualities, especially in these times of international political and commercial uncertainty,” added the director of InvestChile.

Out of total FDI to August, equity accounted for 57% (US$5,178 million) while the reinvestment of profits accounted for 35%, followed by related borrowing with 8%.

Rodríguez recalled that FDI figures have varied widely in recent years so the agency will have to redouble its efforts if the upward trend is to persist over the rest of the year. “At InvestChile, we will continue to work each day so that more and better foreign investment reaches the different sectors and boosts our country’s economic activity,” he concluded.