Chile FDI hits US$4bn in January

Chile registered US$4.20bn in FDI in January, up 295% year-on-year, investment promotion agency InvestChile said, citing central bank data.

Economy minister Lucas Palacios said authorities would continue working to support a solid stream of inward investment. 

The news will be welcomed by the government, facing a complex 2020 as headwinds – largely coronavirus fallout and uncertainty linked to social unrest and a possible redrafting of the constitution – buffet the country.

“Starting 2020 with this growth in investment is a clear indicator that Chile has been forging a path of economic and political stability for decades …” Palacios said. “The institutional path we have taken to solve the challenges posed by the country gives certainty to continue betting on Chile. Although it's the data for a single month, we will work so that this growth is maintained in future, with special emphasis on socially responsible and environmentally sustainable investments.” 

The biggest component of FDI was equity purchases in companies, accounting for US$3.06bn. Reinvestment of profits accounted for US$593mn and debt instruments US$540mn.

Coronavirus fallout will generate FDI headwinds globally, InvestChile said, citing the findings of a UN report. A contraction of 5-15% could be seen. 

InvestChile director Cristián Rodríguez added that officials were working with foreign companies operating in Chile to help support expansion of their local operations.

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