FDI in Latin America grows in 2018 for the first time in five years
Foreign Direct Investment (FDI) in Latin America increased 13.2% to USD 184.29bn in 2018, ending a 5 years trend of contraction, EFE news agency reported citing figures released by the Economic Commission for Latin America and the Caribbean (ECLAC).
The expansion was mainly driven by Brazil and Mexico, which accounted for 48% and 20%, respectively of the total investments. FDI to Brazil jumped 25.7% to USD 88.32bn last year, while inflows to Mexico rose 15.2% to USD 36.87bn. Investments in Argentina and Chile also grew in 2018.
Moreover, FDI in Central America increased 9.4% last year thanks to Panama, which attracted foreign resources worth USD 6.58bn, up 36.3% compared to 2017.
ECLAC revealed that the recovery of FDI in 2018 was based on the growth in profit reinvestment and loans between companies. Manufacturing and services attracted the most of the investments - 47% and 35% of the total inflow, respectively.Original source: EFE news agency