The inflows reached US$14.1 billion for 277 projects, which will generate 15,408 jobs. Among all sectors, mining stood out with US$4.8 billion of the total investment, which in turn explains Canada's leadership in the analysis by country.
The increase in foreign direct investment (FDI) continues strong, as reflected by the US$14.1 billion in InvestChile's project portfolio for 2018, which far surpasses levels from the previous year, when investment reached US$ 7.7 billion.
The 82.4% increase has to do with an increased number of projects in which the agency participated, which jumped from 196 to 277 and which will generate 15,408 jobs, compared to the 10,693 jobs registered in 2017.
The growth trend in InvestChile’s investment portfolio agrees with numbers from the Central Bank, which, using a different methodology, found that foreign direct investment increased during the year. According to the bank, FDI totaled US$7.8 billion between January and October 2018, compared to US$6.3 billion recorded in the same period during 2017.
In InvestChile’s portfolio - the foreign direct investment projects in which the promotion agency participated and which includes all projects that are still under development - the increase in the mining sector stands out, with a 971% increase to US$4.8 billion. The predominance in mining investment explains Canada's leadership in the analysis by country, with investments reaching US$4.9 billion, largely attributed to Quebrada Blanca phase 2.
The solid portfolio of global services, which grew from US$1.6 billion to US$2.4 billion, is also relevant for the agency. "This clearly shows the interest that exists today in Chile as a regional hub. Companies like Amazon Web Services, Google, Ascenty, Nisum, IBM, Equifax, Tata, Citi, Claro and Movistar are already using Chile as a regional base for the export of services or installation of data centers," said Cristián Rodríguez, director of InvestChile.
In the ranking by country, following Canada, the United States (US$4.3 billion) and China (US$1.8 billion) take the podium. With the latter, InvestChile held 30 meetings last year, including with the giant hydroelectric firm Three Gorges, Alibaba Cloud and energy sector player State Grid.
Following the top three is Ireland, which increased its FDI weighting from US$30 million to US$729 million thanks to a series of projects, including one solar energy and three wind farms. Brazil came in fifth place at US$366 million. "The Brazilians, due to internal and external factors, have been taking a look at the rest of the region and in that context they expressed surprise and interest in the conditions offered by Chile," Rodríguez explained.
Rodríguez attributed the performance of the projects to "the good reception that the pro-investment initiatives have had, promoted by the government.”
Would you like to know more about foreign investment in Chile? Take a look at the following article.