FDI rises in Chile despite economic shocks

Foreign direct investment in Chile rose 14% year-on-year to nearly US$10bn in the January-July period despite the strong economic headwinds from the pandemic.

Investment promotion agency InvestChile says technology, services, energy and food received the highest rates of FDI in the local economy. The total was higher than the FDI average for the last five years.

InvestChile’s acting director Juan Araya says the agency's project portfolio has grown 27% in order to counter the economic uncertainty caused by last year’s social protests and the Covid-19 pandemic. 

“Foreign businesses have held steady on their plans and investment projects in Chile,” he told a webinar hosted by Chilean-Spanish Chamber of Commerce.  

He also highlighted that investors have had a positive reaction to the government’s US$34bn reactivation plan.

Concessionaires as Scapegoats

In the same webinar, Abertis CFO André Rogowski said traffic levels on its highways in Chile have fallen 30% year-to-date.

But Rogowski's biggest complaint was about some “very unfortunate statements” following last year's social protests, in which concessionaires such as Abertis were made to feel as “scapegoats” by the Chilean government, he said.

Albertis has invested US$2.5bn in Chilean highways and operates 25% of kilometers administrated under the country’s highways concessions system.

Rogowski said that foreign investors want to be treated as “partners” and hopes to see the right conditions remain in place so that firms can remain in the country.