Economía 14-08-2017

ECLAC: foreign direct investment in Latin America and the Caribbean will fall 5% by 2017

Foreign direct investment (FDI) in Latin America and the Caribbean will suffer a fall of five percent this year, after having fallen 7.9% in 2016, estimated the United Nations Economic Commission for Latin America and the Caribbean (Cepal) in its annual report.

"The ECLAC projects a further decline in 2017, around five percent, so calls on countries to develop policies to attract flows to support national sustainable development processes," said the study, presented in Santiago de Chile.

The executive secretary of the agency of the United Nations Organization, Alicia Bárcena, said that FDI flows to the region fell 7.9% in 2016 compared to the previous year, totaling 167,043 million, representing a 17% drop from the peak reached in 2011.

"These results are explained by the low prices of raw materials and their impact on investments aimed at natural resource sector, the slow growth of economic activity in several economies and the global scenario of technological sophistication and expansion of the economy digital tending towards a concentration of transnational investment in developed economies, "explained the Cepal.

Last year, the region received 10% of global FDI, below the average 14% had been achieved between 2011 and 2014.

ECLAC said that despite the downward trend, FDI flows in the region represent 3.6 percent of gross domestic product (GDP), well above the global average of 2.5%, showing the importance of these tickets for the economies of the American countries.


Last year, Brazil increased its FDI inflows 5.7%, remaining the largest recipient in the region.

That nation received 78,929 million, equivalent to 47% of total FDI managed by other countries in the region.

In Mexico, FDI fell 7.9%; however, it was the second country that received last year, equivalent to 32,113 million entries.

Colombia in third place was located where grew 15.9% by adding 13,593 million.

Below Chile, which absorbed 12,225 million dollars in FDI, accounting for seven percent of the total in the region, Panama, which accounted for 44% of income in Central America, Costa Rica is, with 27% in the subregion.

The study also revealed that countries that invest in the region remain unchanged from previous years, leading the list of countries of the European Union, with 53%, and the United States, with 20%.