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Foreign investment reaches US$4.68 billion to February 2023

  • According to the analysis conducted by InvestChile, this amounts to a 46% increase compared to the same period of 2022.

Chile’s Central Bank reported that foreign direct investment (FDI) inflows reached US$4.68 billion to February 2023, an increase of 46% compared to the first two months of last year. According to an analysis conducted by InvestChile, foreign investment in the first two months of 2023 was 10% higher than the historic average over the last five-year period (US$4.26 billion).

In February, FDI inflows to Chile reached US$3.00 billion, considerably above the average monthly FDI inflows of US$1.83 billion over the last 12 months. According to InvestChile, although FDI inflows to February 2023 fall within the expected range, as this figure only covers the first two months of the year it can’t be used as an indicator to forecast FDI inflows in the coming months.

Reinvested profits accounted for the majority of FDI inflows to February 2023, reaching US$2.98 billion, followed by share capital (US$1.10 billion), and debt instruments (US$595 million).

FDI inflows remain strong

The fact that foreign direct investment has continued to grow at the start of this year following strong results in 2022 is good news, noted Chile’s Minister of Economy, Nicolás Grau. The Government is currently working intensively to attract more foreign investment to the country, in view of the challenging economic scenario this year, he added.

“The Government has implemented several measures to increase investment, including the deployment of investment attachés in five offices around the world,  in addition to the existing investment attaché in Tokyo, in order to promote Chile as an investment destination in strategic countries. We are also working on intense agendas to promote specific sectors, such as green hydrogen and in the near future lithium”, explained Grau.

InvestChile Director, Karla Flores, highlighted that foreign investment inflows remain at a healthy level. “The figure to February is positive and within a relevant range. In any case, it is important to remember that foreign investment flows are highly dynamic, so it is difficult to make forecasts, especially in the current scenario of decreasing FDI flows around the world due to the global economic situation. That said, we see a positive trend in Chile, sustained by our country’s ongoing ability to attract foreign capital. This is, undoubtedly, good news that motivates us to continue our efforts”, said Flores.