MercoPress. South Atlantic News Agency

Argentina and Peru main recipients of Chilean investments in services sector

In two decades Chile’s overseas investments in services totalled 22.7 billion USD

Argentina and Peru are the top recipients of Chilean overseas investments in the service sector according to report released last week covering a two decade period from 1990 to 2010.

Among the top five recipients, Argentina accounts for 27% of Chile's total overseas investments in the service sector, followed by Peru with 23%, United States, 14%, Brazil, 13% and Colombia 6%, according to the report issued by the International Economic Relations Department from the Foreign Ministry.

The five countries absorb 83% of Chilean services sector investments.

The service sector makes up 40% of Chile’s total direct investments abroad, followed by the energy sector with 28.8% and manufacturing, 23.1%.

Chile has been investing heavily abroad in recent years mainly due to the limited size of its domestic market and windfall earnings from copper.

According to the report, Chile's overseas investments in the service sector totalled 22.7 billion US dollars between 1990 and 2010.

Regarding trade spaces, Mercosur takes the lead with 41% of Chilean investments followed by the Andean Community, 30%, Nafta (US, Canada and Mexico) 16%, Central America 4% and the European Union, 2%.