In a year, 2023, of global decline in Foreign Direct Investment (FDI) and, despite the modest economic growth experienced by the region, Latin America maintained its position in this category, with a slight decrease of 1% in the arrival of foreign capital. The US, Spain, the Netherlands and Luxembourg were the main investors in Latin America during a year in which global FDI contracted by 2%, to 1.3 billion dollars. Brazil, Mexico, Argentina, Chile and Colombia were the biggest recipients of FDI last year.
According to the latest ‘Investing in the World 2024’ report by the United Nations Conference on Trade and Development (UNCTAD), the last one published, FDI in Latin America remained almost stable in 2023, totalling $193 billion, which made it the developing area least affected by the global trend of falling investment.
However, with notable differences between countries: Mexico and Brazil, the main destinations for Spanish investment in the region, continued to be the main destinations for foreign capital and Chile grew as an attractive market, with an acceleration of flows, as did Argentina, while Peru, Brazil and Ecuador reduced their attractiveness.
In 2021, FDI flows to Latam would have stood at 140 billion and, in 2022, at 196 billion. “Foreign investment remains subdued amid the global economic slowdown and rising geopolitical tensions,” according to Unctad.
