InvestChile: Foreign Direct Investment in Chile Increased by 78% in 2019 to US$10,797 Million
The director of InvestChile, Cristián Rodríguez, indicated that the figures are in line with the results of the agency's portfolio of projects in 2019 when it grew by 31% to US$18,448 million.
SANTIAGO, Chile, Feb. 12, 2020 /PRNewswire/ -- InvestChile, the Foreign Investment Promotion Agency, said that foreign direct investment (FDI) in Chile in 2019 was up by 78%, on the previous year, at US$10,797 million. This was its second consecutive year of growth, after a 4% increase in 2018 (US$6,082 million), and the total for the year was close to the annual average for 2015-2019 (US$11,185 million).
According to figures published this morning by the Central Bank of Chile, net FDI in December reached US$181 million.
The director of InvestChile, Cristián Rodríguez, indicated that the figures are in line with the results of the agency's portfolio of projects in 2019 when it grew by 31% to US$18,448 million. "The figures announced today by the Central Bank and the results of our portfolio confirm that foreign investment in Chile has not declined but, despite international turbulence, has shown two consecutive years of growth," he said.
The inflow of FDI in 2019 was mainly explained by equity contributions, which reached US$6,821 million, accounting for 63% of the total inflow and representing an increase of 236% in 2018. Reinvested profits, at US$3,263 million, accounted for 30% of the total and related borrowing, at US$713 million, for the other 7%.
InvestChile portfolio
On the other hand, the portfolio of projects supported by the Agency – which are at different stages of development – reached a value of US$18,448 million, closed 2019 with a 31% increase. The projects also increased in number, from 277 initiatives in 2018 to 413 in 2019, equivalent to an annual increase of 51%.
The number of jobs that the projects would create increased to 17,631, up by 18% on 2018 (14,998 potential jobs as of end-year). Out of this total, 7,591 jobs were already created in 2019.
Rodríguez noted that the increase in the value of the portfolio and in the number of projects is a reflection of the proactive support strategy implemented by the Agency. "We will continue working to attract foreign investment that has an impact, is in line with the country's needs, and involves projects that contribute to Chile's development," he said.
China emerged as the main origin of the Agency's portfolio in terms of value, with projects for US$4,852 million, up by 167% on 2018. The number of projects from China also increased by 55% and, at the end of the year, totaled 31 initiatives. China was followed by the United States, with projects for US$3,439 million, and Canada, with projects for US$2,866 million.
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