MercoPress. South Atlantic News Agency

Peru became in 2007 Chile's main foreign investment attraction

Chile's foreign direct investment in 2007 reached its highest level in the past 10 years, according to the Santiago Chamber of Commerce (CCS). Of 4.689 billion US dollars in Chilean capital invested outside Chile, 26%, or 1.236 billion dollars, ended up in Peru.

This figure is four times the amount Chilean firms invested in 2006, when Colombia was the preferred destination. Spurred by retail expansion, capital from Chile's commercial sector was the decisive factor in the growth in investment in Peru. Particularly notable was Chilean retail giant Cencosud's purchase of the Wong group, valued at 500 million US dollars. The company acquired 100% of the Peruvian supermarket chain, which operates under several different names: Wong, Metro, Eco and American Outlet. Brazil placed second in Chilean foreign investment in 2007, with Argentina third. Chilean firms invested 875 million US dollars in Brazil, a 232% increase over 2006. The commercial and industrial sectors attracted the most capital. Argentina was not far behind, with 775 million US dollars. According to CCS figures, the fourth quarter of 2007 alone saw more Chilean foreign direct investment than all of 2006, making it the second most active quarter since 1997. One reason for this high level of activity was the acquisition of foreign businesses in October and December. CCS economist George Lever projects a decline in Chilean foreign direct investment in Peru during 2008. "When we see large size operations like this, we normally see an adjustment in the following period," he said. Lever also anticipates growth in the industrial sector. The Santiago Times