Blog Category: News

The Chilean Central Bank has reported record-breaking FDI levels in the first 6 months of 2022 with levels 66% above the same period in 2020. US$13.7 billion is the highest level ever recorded. Most popular sectors are retail, manufacturing and wholesale. Around 65,000 companies in Chile are financed by foreign capital which equates to around 10%. One United Nations report says that the increase is fuelled by several large acquisitions and renewed interest in mining projects.

Cyprus has launched an action plan to increase tax certainty and attractiveness to foreign investors. Currently is takes less than 2 weeks to setup a business in Cyprus and open a bank account however the regulatory environment is complex and uncertain, making it a high-risk destination. The country has one of the lowest costs of doing business and is strategically located. The reforms are designed to improve the environment for investors and increase foreign direct investment. The most notable reform regards transfer pricing: the Cypriot Government has recently passed legislation to bring it into line with OECD standards. This development will increase transparency and therefore decrease risk of doing business in Cyprus. Previously, no detailed documentation existed on this topic in particular the arms-length principle.

The first National Manufacturing Day will be held on 7 July. Initiated by MAKE UK, the UK’s Manufacturing industry body, the day will host a number of events nationally hosted by member companies. So far 109 employers have pledged to open their doors to the local community so people can see how things are made, and are hosting their own events including RNLI opening its doors to its Lifeboat Centre in Poole Dorset where lifeboats are manufactured.

Global automobile manufacturers plan to spend more than half a trillion dollars on vehicles and batteries by 2030 according to the Global EV Outlook report. Zero carbon and ultra low emission zones in major cities have increased the previous estimate over the past three years by almost 100%. Electric vehicle sales doubled in 2021 spurred on by rising fuel prices, improved infrastructure and emissions charges from governments. Electric vehicle sales are up 75% in the first quarter of 2022 on 2021.

Britain has signed a new free trade deal with Mexico which came into force on 1 June 2022. The old deal was 20 years old and migrated over from the old EU agreement. It is currently the UK’s 44th largest trading partner and while UK exports are £44 billion imports are only £4 billion. Mexico is the world’s 16th largest economy with a population of 150 million by 2035. Demand for imports is expected to grow by 35%.

The UK attracted the second highest numbers of projects in Europe at 993 and Germany fell further behind. London was the most attractive city for FDI projects attracting 40% of total FDI into the UK including mergers and acquisitions, building new facilities and the purchase of an interest in a company by an overseas entity. London is the 4th city globally and 1st outside America to attract highest VC investment at $25.5bn with fintech leading the way. London gave birth to 20 unicorns (startups valued >£1bn).

The UK has completed stage 1 of negotiations to join the £8.4 trillion Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The partnership currently consists of 11 countries Australia, Canada, Japan, Mexico, New Zealand, Singapore, Brunei Darussalam, Chile, Malaysia, Peru, and Vietnam. The UK will be the first new addition since the organisation was launched in 2018. It represents one of the largest and most dynamic free trade areas and constitutes 13% of global GDP. In 2020 member countries imported 8.6% of UK goods and services and the source of 6.8% of imports.

A new OECD report says global FDI at $1.82trn in 2021 was 88% up on 2021 and 37% up on pre-pandemic 2020 levels. The report states the main factor as foreign owned companies not redistributing profits back to parent companies rather reinvesting in the local subsidiary. In addition, cross-border M&A was up 50% in developed countries and 25% in developing countries. The top FDI destinations were America followed by China, Canada and Brazil. America was also the greatest source of outflows. FDI inflows grew by 96% in OECD G20 economies.

More than 18,500 tech startups incorporated London in 2021, a 94% increase on 2020. In addition, the number of new tech companies in UK increased 62% in the same year at more than 38,000. Nick Jordan, Trade Horizons CEO, said “London and the UK are increasingly attractive to overseas tech companies because of our innovation culture, ease of doing business and generous support schemes to encourage accelerated, sustainable growth for new companies. The Government’s various support schemes for new technologies in crypto and sustainability areas is making the UK a very hot place right now for tech startups and scaleups.”