March 22, 2024 #ChileGlobal

After Central Bank review: foreign investment closed 2023 with an increase of 19.2%.

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The country received US$21.738 billion in FDI last year. According to InvestChile's analysis, the figure is the highest since 2015.

On Monday, March 18, the Central Bank published its quarterly reports, which included a review of foreign direct investment (FDI) figures for the last two years. According to the issuing institute's data, the country received an investment flow of US$ 21,738 million during 2023, US$ 1,373 million more than preliminarily reported last February (US$ 20,365 million).

To this adjustment was added the revision of the figure recorded in 2022, which recorded a decrease of US$ 2,628 million to US$ 18,327 million. After the corrections, the increase in the flow of foreign direct investment received by Chile in 2023 was established at 19.2%.

According to InvestChile's analysis, this increase is highly influenced by the downward revision in the comparison base. However, the Agency also highlights that the US$21,738 million figure represents the fourth largest figure in the historical series of the last 20 years, and the highest amount in the last five years. In percentage terms, the revised figure for 2023 represents an increase of 50% over the average of the historical series and 36% over the average of the last five-year period.

Regarding the composition of FDI in 2023, equity investments were adjusted to US$ 10,704 million, followed by reinvestment of profits with US$ 8,844 million and in third place was related debt, with US$ 2,189 million.

Highest figures since 2015

For the Minister of Economy, Nicolás Grau, the upward revision of foreign investment figures is good news, as it positioned 2023 as the year with the highest foreign investment flow since 2015. "US$21.738 billion is the highest foreign investment value in the last 10 years. This shows that investors from around the world increasingly trust Chile. In 2022 we improved with respect to 2021 and in 2023 we improved with respect to 2022," the Secretary of State maintained.

In this regard, the director of InvestChile, Karla Flores, emphasized that the figures are the result of a coordinated effort between the different government agencies and the private sector to attract to Chile the investment that the country needs and that is in line with the development strategy promoted by the government.

"These figures call us to continue working as an agency. Today we are attracting investment to the country that brings innovation, technology, training and good practices, and whose effect not only consolidates our regional leadership in key sectors such as technological infrastructure or those related to solutions for decarbonization, such as critical minerals and clean energy, but also generates a series of relevant impacts in our regions, promoting and diversifying their economic fabric and generating more and better employment opportunities. Foreign investment helps us to make quality leaps in sectors where we need to advance rapidly; it is an economic engine that we all have to take care of and promote together", explained Flores.

Check out InvestChile's article by clicking here.


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