InvestChile, the Foreign Investment Promotion Agency, reported that foreign direct investment (FDI) arrived between January and May 2022 reached 9,603 million dollars, according to information from the Central Bank of Chile.
The amount is 11% lower than that reached in the same period of 2021 as a result of a high comparison base for acquisition transactions that took place in February 2021. Likewise, the accumulated data is 60% higher than the historical average of the series. 2003-2022 (5,990 million dollars) and is 17% above the average of the last five years (8,228 million).
In May of this year alone, FDI inflows reached 1,837 million, a figure much higher than that recorded in May 2021, when a negative amount of 648 million was recorded. The amount also exceeds the 1,168 million average for the last 12 months.
By components, the one that most stood out in the first five months in the flow of FDI was the reinvestment of profits, totaling 3,953 million dollars. In turn, participations in the capital reached 3,233 million and debt instruments 2,417 million.
When consulted the Minister of Economy, Development and Tourism, Nicolás Grau, about the flow, he stressed that “it shows that foreign investment has not stopped in the country, however, there is still a long way to go in terms of investment and public-private coordination “. He added, “These figures show Chile’s capacity -beyond one-off operations- to regularly attract investment in amounts higher than what we had before the pandemic. This is not only a reflection of the image that Chile has before investors, but also the confidence that international companies have regarding our development in the medium and long term, and their willingness to reinvest and expand their operations in the country,” he said.
The director of InvestChile, Karla Flores, an organization recently awarded in Madrid by the Chile-Spain Foundation, assured that “the figures are a good sign of the dynamism of foreign investment and corroborate the high interest that companies have in continuing to develop businesses in Chile, which is something that as an agency we constantly appreciate. I especially appreciate that this result also occurs in a context of high uncertainty in global markets. For us it is an invitation to continue working to attract investments that have a positive impact on the economy and especially in the creation of jobs” he added.
The Agency is implementing a new strategy in its work divided into three axes: a) position foreign investment as an economic policy tool at the service of the national development strategy; b) that Foreign Direct Investment (FDI) and its benefits play an effective role in solving the urgent needs of Chileans; c) position Chile as a hub of opportunities for the investment of the future.
Flores, referring to these axes, notes “the first thing will be achieved through articulation in the State with ministries, services and regional governments, with a long-term vision of the country, which allows us to incorporate the private world and guide our work and coordinated efforts towards sectors in which investment can make a difference. In the second point, we talk about opening and strengthening channels throughout the territory, to take better advantage of the benefits of investment. And in the third point, we want to take advantage of the special characteristics that transform it into a natural laboratory of excellence to be an inclusive and green technological investment test market”, he clarified.
What did InvestChile do in 2021 in times of pandemic? They carried out 115 activities in 23 different countries, with the aim of promoting investment opportunities. The portfolio increased by 25.1%, managing and supporting 486 projects in different stages of development for more than 27 billion dollars associated with the creation of more than 20 thousand permanent jobs, 37% more than in 2020.
“As in 2020, more than 85% of these activities were carried out remotely, which required strengthening our work to identify companies with investment potential, and coordinated work with the State’s external network,” Flores pointed out. There was diversification of the investor countries and they closed the year with the management of projects from 49 different countries.
He highlighted the work through digital marketing from the “country at the end of the world”, InvestChile has been a pioneer among foreign investment promotion agencies globally. So much so that they developed 187 digital campaigns that allowed 30 new projects to enter for more than 1,500 million dollars. These figures translate to 1 in 4 projects coming from digital marketing compared to 1 in 22 initiatives coming from the same channel four years ago.
Karla Flores acknowledged “even though our 2021 results were positive, the agency’s challenges are extremely important this year, in which we are locally facing a post-pandemic scenario, where the recovery of employment is a priority and all this in a complex international context. “, he stressed.
He concluded by commenting that “we will continue working to attract more and better foreign investment to the country, which contributes to our economy, generates new opportunities, improves the quality of life of our people, and allows us to take a leap towards a sustainable and inclusive future,” he added. .
Chile must continue to offer institutional stability, legal certainty, certainty, economic strength, and physical and technological infrastructure to promote new ventures. This has already worked well in the recent past and of course it can be improved, but without losing what has been achieved so far.
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