The foreign investment Direct investment (FDI) in the countries of Latin America and the Caribbean increased by 51% in 2022, according to the latest World Investment Report presented today by the United Nations Agency for Trade and Development (UNCTAD).
In total, investments in the region reached US$208 billion, thanks to the growing demand for raw materials, particularly essential minerals.
Of all the developing regions, Latin America and the Caribbean was the one that experienced the largest increase in FDI in 2022.
Brazil leadership
By subregion, South America registered the highest growth in this type of investment. FDI increased by 73% there compared to the same data from 2021.
Brazil led the rise in FDI and accumulated investments valued at US$86 billion, 70% more than the previous year.
The country also dominated the number of international project financing operations and was the fifth country that established the most operations of this type worldwide.
FDI also doubled in Argentina (US$ 15,000 million) and in Peru (US$12 billion), and increased by 82% in Colombia (US$17 billion).
Central America and the Caribbean
In the Caribbean countries the increase was 53%, while in Central America it was much less and did not exceed 5%.
In Mexico, the second largest recipient of FDI In Latin America, investments increased by 12% to US$35 billion, while the Dominican Republic led the rise in Caribbean countries with operations valued at US$4 billion.
According to UNCTAD data, the percentage of foreign investment that went to regional projects in Latin America and the Caribbean did not exceed 8% in value terms, two percentage points more than six years ago.
most attractive sectors
By divisions of economic activity, the service sector -and in particular the information and communication segments- accounted for most of the net sales in the region.
Sales of the region’s large multinational manufacturers also experienced a strong increase, mainly in the food, beverage, tobacco, chemical products, and paper and derivatives sectors.
As for FDI announced for new facilities, these increased by 57% in 2022, especially in the extractive and automotive industries.
One more year, United States, Spain and the Netherlands they were the largest foreign investors in the region.
Source: EFE
Source: Gestion
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