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In 2023, foreign direct investment (FDI) in Latin America will reach US$184.304 billion. The year-on-year decline was 9.9 percent, ECLAC reported Thursday, due to a drop in investment in the services sector.
(Via: What are the prospects for investors in the second semester?).
Negative performanceThis is mainly attributed to the decline in FDI inflows into the services sector in most economies in the region, which contrasts sharply with the sector’s good performance in 2022.” The Economic Commission for Latin America and the Caribbean (ECLAC) said in a report.
despite this, In 2023, the region’s FDI inflows will account for 14% of the world’s total. Cepal, a Santiago-based UN technology organization, stressed that participation exceeded the average of the 2010s (11%).
Latin American traffic to decline by 2023It must be placed in the global context of reduced foreign direct investment flows due to high interest rates and ongoing geopolitical conflicts.He explained Marco Llinás, Director of the Production and Business Development Department at ECLAC.
The region was affected by lower investment in Brazil (-14%) Yes Mexico (-23%), two major economies in Latin America.
(Via: Oil and gas exploration and development investment targets for 2024 cannot be achieved).
Peru also saw a decline in FDI inflows (-65%), while Argentina yes Chile recorded growth (57% and 19% respectively).
Even though I fell, Brazil, The country with the largest foreign direct investment in 2023 was US$64.23 billion, accounting for 34.8% of the total, followed by Mexico (16.4%), Argentina (12.9%), Chile (11.8%) Yes Colombia （9.3%）.
USA (33% of the total) and European Union (12%, excluding the Netherlands and Luxembourg, which account for 8%) are the main investors, although China Reduced investment in the region.
(Via: Grupo Aval says there is no growth without investment, and regions can help).
In 2023, FDI inflows into services fell by 24%. This is in stark contrast to the good performance in 2022. However, the industry maintained its leading position across the region, accounting for 46% of the total.
In itself, Manufacturing investment grew for the second consecutive year, up 9% from 2022. Also, those working on natural resources (+16%).
(Via: Nearly 30% of government investment in 2025 will depend on the Financing Law).
“With some exceptions, FDI continues to be concentrated in sectors and countries that offer natural resources or relatively cheap labour.”, warned ECLAC, calling for “Adding more value to natural resources and diversifying and scaling into sectors with a larger and more qualified workforce“.
AFP
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