Spain consolidates itself as the second destination for Latin American companies

Spain consolidates itself as the second destination of the multinational companies of Latin American origin, only behind the US, and as the first entry point for these companies in the European market, according to a study by the Business Council Alliance for Ibero-America (CEAPI).

The document, presented this Thursday at the Casa de México Foundation in Spain, indicates that multilatinas locate 88% of their subsidiaries between South America and Mexico and another 7% in the United States and Canada, with Mexican and Brazilian ones being the most diversified.

Now, the dynamics of investments seem to indicate that there is a tendency to progressively expand towards other regions such as Europe and more specifically towards Spain.

“There is a vigorous expansion towards Spain of the multilatinas, with an increasingly intense arrival, led by the Mexicans, followed by the Brazilians, Colombians and Argentines”stated in the presentation of the report its author, the member of the University Institute for Research in Latin American Studies (IELAT) of the University of Alcalá in Madrid and professor of the IR master’s degree at the IEB Ramón Casilda Béjar.

The study specifies that, currently, multilatinas have a growing presence in the international economy and are located directly or indirectly in 114 developed and emerging countries.

In 2022, they achieved historic levels of foreign direct investment, with a total of US$ 74,677 million, which represents an increase of 80%, compared to the previous year, in investment from Latin America and the Caribbean to the same region. other destinations like Spain. This growth was mainly due to those of Brazilian and Mexican origin.

It also ensures that Spain is committed to and strengthened as a center of operations for multilatinas, as it has positive and competitive differentiating positions, facilitating access to the markets of EuropeNorth Africa and the Middle East.

In the period 2011-2020, Spain had a ‘stock’ Latin American of 48,631 million euros (US$ 52,602 million), somewhat lower than the 51,300 million euros (US$ 55,799 million) in 2019, although in 2021 it registered a slight decrease to 47,168 million euros (US$ 51,304 million).

However, the trend has been increasing, since during the period 2011-2020 it increased by 92%.

By country, the main one is Mexico, which has 28,004 million euros (US$ 30,459 million) (57% of the total); followed by Argentina, 8,076 million euros (US$ 8,784 million) (16%); and from Venezuela, 5,040 million euros (US$ 5,482 million) (10%).

Only France, USA and the United Kingdom have invested more in Spain than Latin American companies, which exceed other emerging economies such as China in invested volume, the report dictates.

This document was presented at an event that was attended by the president of the Spanish Chamber of Commerce, José Luis Bonet, the president of CEAPI, Núria Vilanova, and the general director of the Casa de México Foundation in Spain, Ximena Caraza.