News

Total is among the highest in the last 18 years.
Approved foreign investment reaches record US$ 10.4 billion
Published: January 22, 2009

This figure reflects investor confidence in Chile.

Last year was one of the most active in terms of foreign investment. Between January and the first half of December, the Foreign Investment Committee authorised the inflow of US$ 10.4 billion in foreign capital. This is the highest figure in the last 18 years, surpassed only in 1999 when initiatives of US$ 10.7 billion were endorsed.

This figure was approved in a session of the Foreign Investment Committee (Cinver). For the president of the body and minister of Economy, Hugo Lavados, this positive situation reveals the confidence of investors in our country. "These are concrete facts which support the strength of Chile confronted with instability. For example, the Santiago stock exchange is currently one of the least affected by the international financial crisis. The IPSA fell 24.5% in 2008, whereas the DowJones dropped 36.4%, Bovespa fell 40%, and Merval slumped 50.8%". He also noted that, according to November 2008 data, the Chilean Sovereign Spread (EMBI) reached 353 points, compared to the 739 average in Latin America, 619 point average in Asia, and 707 average in Europe. "These are clear signs of Chile?s strength and that foreign investors value the economic stability, the signing of Free Trade Agreements with 57 economies, and high levels of transparency."

According to the Global Competitiveness Report 2008-2009, Chile is ranked as the most competitive country in South America, and the third most competitive in America after the U.S. and Canada. Chile is ranked the 28th most competitive country worldwide.

The executive vice-president of the Foreign Investment Committee, Liliana Macchiavello, pointed out that the investment figures for 2008 achieved significant levels, having tripled those of 2007. In fact, between January and September of 2008, investment amounted to US$ 4.025 billion, in comparison to US$ 913 million from the same period the previous year.

"This year has been extremely positive in terms of foreign investment, in both approved and materialized amounts. This shows that Chile is still regarded by investors as a safe and reliable destination for their investments."


Breakdown of foreign investment

If the total approved investment for 2008 is broken down, it shows an important diversification of the sectors into which foreign investment is arriving. Electricity, gas and water, services, transport and communications are examples of such sectors. "While the mining sector remains the largest recipient of investment, with 43.8% of the total amount approved for this year, non-mining projects represent 56.2% of the investment", stated Macchiavello.

The most important initiatives in terms of investment include a solar energy project for US$ 1.35 billion, presented by a group of Korean investors; also, the Spanish company GlovalVia Infrastructures Ltd with US$ 410 million, who seek to invest in infrastructure concessions. Other multi-regional applications include CVGIP II South Entertainment, a division of Citigroup, who seek to invest in casinos, hotels and real estate development in the I, IX, XI, XII and XIV regions, as well as in tourist hotels throughout the country.

Source: www.cinver.cl