Chile Invests More of its GDP Abroad Than the EU & China

When most people think about foreign direct investment (FDI) and Latin America, they usually consider how much money goes into the region's economies—technically known as FDI inflows. LatAm's FDI outflows (let’s call them OFDI), or the money that a country's investors invest outside their own, often flies under the radar.

Here's something else that the media and economists may have missed when discussing FDI abroad: Chile is a prominent player in the investing game. The country invested $14.5B outside Chile's borders in 2021, close to the amount it received from foreign investors ($15.3B) that same year. Its outflow is also just behind Brazil's ($16.2B), an economy five times its size. If that hasn't sparked your curiosity, look at our chart: Relative to its GDP, Chile is a more active investor on the world stage than some of the most advanced economies, including the USA, Japan, and the EU.

According to the Central Bank of Chile, about half of all investments have gone into Brazil, the US, and Panama in the past 10 years. The bank's data also shows that the capital is well distributed, with money flowing into the energy, finance, manufacturing, and several other sectors.

What's Chile's secret sauce for splashing so much cash worldwide? Relatively stable macroeconomic policies, an open trade regime, and a favorable investment climate. Perhaps ProChile exemplifies Chile's globalization energy best. The government institution empowers small and medium-sized enterprises to expand their businesses globally by leveraging trade agreements and fostering partnerships.