Chile FDI rises 35% in January-April, hits US$7.2bn

Foreign direct investment in Chile rose 35% year-on-year to US$7.16bn in January-April, investment promotion agency InvestChile said in a release, citing central bank data.

The figure is the second highest for the period since 2012.

Equity purchases accounted for the bulk of FDI, with US$3.81bn reported – the biggest total since 2003, when the current data series began.

Reinvestment of profits accounted for US$2.32bn, followed by debt instruments (US$1.03bn).

InvestChile director Juan Araya welcomed the January-April figures but said gauging future flows was difficult on account of the global health crisis.

Araya said: “To date, the flows reflect the resilience of the activity of foreign companies in our country, but as an agency we must continue working so that projects continue to develop, with a focus on job creation and on the fact that forecasts indicate difficult months are coming in terms of attracting investment.”

He added that foreign companies will play a key role in the country’s recovery.

Globally, coronavirus headwinds are expected to dent FDI, with the UN forecasting a steep drop of up to 40% in 2020-21. 

FDI in Chile climbed 171% over the first quarter.

ALSO READ: How the World Bank expects LatAm’s 6 biggest economies to perform