MercoPress. South Atlantic News Agency

Record direct investment in Chile in the first four months of 2018

President Piñera who took office in March, has set a target of increasing investment an average of 6 to 7% in the next four years and introduced a law to cut red tape

Foreign direct investment in Chile reached US$ 8.48 billion in four months January to April, its highest level since records began 15 years ago, thanks to a new law designed to attract investment, the government investment agency stated.

 “The investment inflows from abroad are a clear sign of economic recuperation,” said InvestChile in an emailed statement.

Chile's conservative President Sebastian Piñera, who took office in March, has set a target of increasing investment an average of 6 to 7% in the next four years and introduced a new law to cut red tape.

InvestChile said the FDI consisted mostly of reinvestment of revenue in Chile by foreign companies and equities and bonds investment.

The biggest inflow came from China's Southern Power Grid, which bought a 27.7% stake in Chile's largest electric transmission system, Transelec, for US$ 1.3 billion.

The Transelec deal represented one of the largest such transactions by a Chinese firm in Chile so far and was seen as part of a broader campaign by the superpower to increase economic and political ties with Latin American nations.

FDI contracted for four years under the previous center-left government which was blamed on a low copper price and weak investment in the country's key mining industry.