Chile's foreign investment overtakes Brazil and Mexico and would achieve record figures in 2010Published: July 27, 2010
The Chamber of Commerce in Santiago forecasts that the influx of foreign capital into the country could overtake US$15,000 million. During the first quarter in 2010, Chile overcame Brazil and Mexico as the Latin American's first destination.
The Foreign Direct Investment (FID) in Chile could reach a new record. Projections for this year are pointing a range between US$15,000 and US$20,000 million.
This was anticipated by the Chamber of Commerce in Santiago (CCS), after the world report on the influx of FID by the United Nations Conference on Trade and Development (UNCTAD) was publicized.
According to the Manager on Studies of the Trade Association, George Lever, there are some clues to anticipate that this year's capital inflow will exceed the levels achieved between 1990 and 2009. "There are positive prospects for the economy. We also need to include the announcement of projects by the mining and services sectors, involving a significant capital injection", the CCS's spokesman says.
Under the entity's information, based on the UNCTAD report, the highest FID sum received in the country so far was in 2008, when the foreign capital inflow was a total of US$15,181 million. In turn, last year's investment increased up to US$12,702 million.
Regional LeaderThe prospects for FID influx in Latin America and the Caribbean are improving in 2010, according to the UNCTAD report, as the region is being overcoming "relatively quick" the financial and economic world crisis.
In fact, during the 2010 first quarter, the capital inflow rose 20% regarding the same period last year. During that period, regardless of the tax haven, Chile particularly stood out from the rest and, with nearly 50% in its inflow, achieved the region's first position with over US$5,700 million during the January-March period.
For this sum, Chile overtook Brazil (US$5,600 million) as the favorite destination for investors in the region. Listing third, Mexico had US$4,333 million.
According to the study, medium-term prospects are "promising", since the main receivers, Brazil, Mexico and Chile, keep being the favorite destinations for investors.