Foreign investment grew in Chile and reached its highest record since 2015

The flow of foreign direct investment (FDI), which contemplates January and December 2022, reached the figure of US$17,105 million.

The Central Bank of Chile reported that the flow of foreign direct investment (FDI) received between January and December 2022 reached USD 17,105 million. According to InvestChile, these figures represent the highest figure since 2015.

According to the analysis carried out by InvestChile, the amount is 12% higher than that accumulated in the same period of 2021, 36% higher than the average of the last five-year period (USD 12,617 million) and 23% higher than the average of the historical series 2003-2022 (USD 13,921 million).

In that In this sense, the most important component of the FDI flow was participation in capital, which, in turn, accumulated an amount of USD 9,084 million in said period. Subsequently, the reinvestment of profits, which reached an amount of USD 6,664 million, while the debt instruments accumulated an amount of USD 1,358 million. However, the figures published today correspond to a preliminary record, so adjustments could be made in the next review that the Central Bank will make on March 18.

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According to the Chilean Minister of Economy, Nicolás Grau, these data may contribute to the arrival of new technologies and the generation of quality jobs for Chilean men and women.

Regarding this record, the Chilean Minister of Economy, Nicolás Grau, pointed out that the figures are a “a good sign for the Chilean economy”, since “a higher level of foreign investment, in addition to providing an injection of liquidity for the economy, contributes to the development of the country through the installation of sustainable projects, the arrival of new technologies and the generation of 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 install their projects, global companies focus on long-term results, and for this reason it is a good sign that foreign investment continues to grow in our country (Chile), because it speaks of confidence in our economy. and in its future development. As a government, we will continue working to attract sustainable and quality investment to the country, since its contribution to the recovery of the economy is essential,” added the highest authority for the Economy.

For her part, Karla Flores, director of InvestChile, pointed out that the data shows the willingness of investors to maintain their businesses in the country and increase their existing operations. The economist also added that 92% of the capital flow that entered the country during 2022 corresponded to new projects or expansion of existing projects, while only 8% came from loans to subsidiaries from home array.

From InvestChile, in turn, they stated that their work this year will focus on attracting investment from markets that are considered strategic and that guarantee the sustainability of Chile, a complex challenge but one that, they assure, they will face with great optimism and enthusiasm.

''We have reason to be optimistic. Chile has established itself as an investment pole within Latin America, especially in terms of technological infrastructure and clean energy. All companies that want to contribute to the sustainable development of our country are welcome to develop their projects in Chile, declared Flores.

According to the Chilean economist Wilfredo Araya, these data ''have an impact due to the growth of foreign direct investment, a concept that is given by direct contributions and new capital flow in the Chilean economy, but also other variables that are particularly the reinvestment of profits in national projects'' '. On the other hand, “the acquisition of corporate or sovereign bonds (from the Central Bank of Chile), which has no less impact because it means that, at least, there was no new capital flight.”

< p class="paragraph">''There is a challenge because capital flight, from 2021 onwards, is estimated at $US60 billion. In short, there is still a long way to go to recover those previous levels. However, these data are a good precedent for the recovery of the capital that has left''.

On the other hand, Wilfredo Araya stated that, “this year, the Investment would be limited and at the same time, according to the projections of the IMF (International Monetary Fund) and the World Bank, Chile would only grow in relation to Haiti'' In its absence, ''there is not much to execute or celebrate, but rather, hope that this year the economy will not have such a direct impact, rather an adjusted impact in relation to the positions that the IMF has,'' he stated.