Latin America Attracts Foreign Direct Investment

In 2022, the volume of foreign direct investment (FDI) in the countries of Latin America and the Caribbean increased by 55.2% compared to the results of the previous year and has grown to $224.57 billion. According to experts from Economic Commissions for Latin America And Caribbean (ECLAC), “It was a new historical record.”

The Commission stressed that “over the past 10 years, annual foreign direct investment in Latin America and the Caribbean has never exceeded $200 billion.” This factor also caused the share of FDI in the total GDP of the continent to increase by 4 percent.

According to the ECLAC report, “in 2022, foreign direct investment inflows increased in virtually all countries.” In terms of distribution between countries of collected investments, last year’s ranking was led by Brazil (41% of the total), followed by Mexico (17%), Chile (9%), Colombia (8%), Argentina (7%), and Peru ( 5%). Brazil ranked fifth in the world in FDI in 2022.

More than half, i.e. 54% of foreign investment, was related to the service industry, mostly the financial sector. Next comes energy infrastructure, electricity, gas and running water, telecommunications and transport.

For the first time since 2010, foreign direct investment in start-ups increased by 93% last year and reached $100 billion. 24% of FDI was made in new projects related to the production and transportation of hydrocarbons. In second and third places are automotive projects (13%) and renewable energy sources (11%).