Latin America and the Caribbean to attract record foreign direct investment in 2022 – ECLAC
Latin America and the Caribbean enjoyed a record influx of foreign direct investment (FDI) last year, the United Nations reported on Monday, mainly in the services, manufacturing and energy sectors that recovered from the pandemic.
According to a report by the UN’s Economic Commission for Latin America and the Caribbean (ECLAC), income from FDI, or cross-border asset purchases, rose 55.2% from 2021 to reach $224 billion last year.
“FDI flows to the region have not exceeded $200 billion since 2013, so the recovery in 2022 represents an important milestone in investment over the past decade,” ECLAC said in the report.
Cross-border investment will focus mainly on the region’s service, hydrocarbon and manufacturing sectors by 2022, ECLAC said, raising the FDI contribution to the region’s gross domestic product (GDP) to 4.0%.
The number of mergers and acquisitions rose 7%, but the value of transactions rose 57% to $30.15 billion last year.
ECLAC said it could be due to companies making profits during the coronavirus pandemic.
Brazil, the region’s largest economy, accounts for the lion’s share of investment at 41%, followed by Mexico at 17%.
Globally, ECLAC reported an 11% increase in FDI, excluding the impact of “significant exclusions” in global financial center Luxembourg.
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