Foreign Direct Investment in Latin America & the Caribbean

Matías Mori Executive Vice President Foreign Investment Committee

Latin America

2 Source: UNCTAD y CEPAL

Economy and Population

GDP (2010) US$ 4,789 billion

GDP per cápita (2010) US$ 8,735

GDP growth rate (2010)

6%

Population (2010) 548,2 million

Labor Force (2010) 259,8 million

Unemployment Rate (2010)*

7.6%

Life Expectancy (2010)

74.6 years

Literacy Rate (2010)* 91.7%

* For Latin America & the Caribbean

Government of Chile| Foreign Investment Committee

Evolution of FDI Inflows to LA & the Caribbean

3

LA & the Caribbean: FDI Inflows by subregion, 1990-2010

(US$ billion)

South America Mexico, Central America & the Caribbean Total

In 2010, the FDI inflows to Latin America & the Caribbean rose 40%, to US$113 billion.

Government of Chile| Foreign Investment Committee Source:

43

26

21

30

10

22

7

3

6

15

17

4

2

1

20

19

18

15

10

9

8

7

6

5

4

3

2

1

0 50 100 150 200 250

Indonesia

Chile

Mexico

Spain

France

Singapore

Russia

United Kingdom

Germany

Brazil

Belgium

Hong Kong

China

United States

2010

2009

Source:

Global FDI Inflows 2010

4

Chile

Brazil

Global FDI Inflows, top 20 host economies (Selected economies)

Government of Chile| Foreign Investment Committee

Mexico

5

Top LA & the Caribbean FDI host economies, 2009-2010

(US$ billion)

Top FDI host economies in LA & the Caribbean

Government of Chile| Foreign Investment Committee

Brazil

Mexico

Chile

Peru

Colombia

Argentina

Panama

Uruguay

Dominican Republic

Costa Rica

Source:

6

LA & the Caribbean FDI by economic sectors, 2005-2010

Source:

FDI Inflows by economic sectors

Government of Chile| Foreign Investment Committee

South America Mexico, Central America & the Caribbean

Natural resources Manufactoring Services

7

Origin of FDI Inflows in LA & the Caribbean

Origin of FDI in LA & the Caribbean, 2006-2010

Government of Chile| Foreign Investment Committee

  United States

  Spain

  Netherlands   China

  Latin America

  Canada

  Japan

  United Kingdom   Caribbean

  Others

Source:

FDI Inflows in LA & the Caribbean 2011

8

Forecast of FDI Inflows in LA & the Caribbean, 2011

Government of Chile| Foreign Investment Committee Source:

Transparency in the Region LATAM

9

Corruption Perception Index (Selected economies of 178 countries)

Source: Government of Chile| Foreign Investment Committee

Denmark United Kingdom

Chile United States

Uruguay Spain

Puerto Rico Costa Rica

Croacia Italy

Brazil Panama

Colombia Greece

Peru Mexico

Argentina Bolivia

Venezuela

Ease for Doing Business (Selected economies of 183 countries)

Ease for Doing Business LATAM

10 Source:

172

149

130

127

115

106

70

63

49

43

39

36

35

3

2

1

Venezuela

Bolivia

Ecuador

Brazil

Argentina

Paraguay

Poland

Czech Republic

Spain

Chile

Colombia

Peru

Mexico

New Zealand

Hong Kong

Singapore

Peru

Colombia

Chile

Paraguay

Argentina

Brazil

Ecuador

Bolivia

Venezuela

Government of Chile| Foreign Investment Committee

Source: 11

Economic Freedom LATAM

Economic Freedom (Selected economies of 179 countries)

175

147

138

113

113

77

64

49

45

41

33

23

16

11

9

3

2

1

Venezuela

Bolivia

Argentina

Brasil

Paraguay

Francia

Costa Rica

México

Colombia

Perú

Uruguay

Alemania

Reino Unido

Chile

Estados Unidos

Australia

Singapur

Hong Kong

Chile

Uruguay

Peru

Colombia

Paraguay

Brazil Argentina

Bolivia

Venezuela

Government of Chile| Foreign Investment Committee

Singapore

United States

Germany

United Kingdom

Mexico

France

Source: 12

Competitiveness in the Region LATAM

World Competitiveness Scoreboard 2011 (Selected economies of 59 countries)

59

54

46

44

43

42

38

35

29

25

21

20

19

3

2

1

Venezuela

Argentina

Colombia

Brazil

Peru

Italy

Mexico

Spain

France

Chile

New Zealand

United Kingdom

China

Singapore

United States

Hong Kong

Chile

Peru

Brazil

Colombia

Argentina

Venezuela

Government of Chile| Foreign Investment Committee

www.foreigninvestment.cl cie@foreigninvestment.cl

Foreign Investment Committee

LEGALDISCLAIMER:Theinformationcontainedhereinisintendedsolelyforgeneralguidance.Theimplementationoflawswillvaryaccordingtothefactsapplicabletoaspecificcase.ThispresentationismadeintheunderstandingthattheChileanForeignInvestmentCommitteeisneitherengagednorrendersanykindoflegal,accounting,taxorbusinessadvice.Noendorsementsaremadebythis

agencyinconnectionwithpotentialbusinessventuresundertakenbypotentialinvestors.