During the past year, direct capital inflows totaled US$9,325 million and represented 4.4% in South America.
The Economic Commission for Latin America and the Caribbean (Cepal) He reported that foreign direct investment (FDI) in Uruguay grew by 155% during the year 2022 vs. 2021, with capital inflows that totaled 9,325 million dollars and represented 4.4% of the total in South America.
These direct investments of foreign capital were higher by 5,668 million dollars at 2021which totaled 3,657 million dollars, and 8,799 million dollars in 2020, in the midst of the pandemic, when they reached 526 million dollars.
However, the regional commission of the United Nations Organization (UN) points out that during the year 2022, Uruguay experienced a reduction in the amounts of FDI announcements compared to what it was in 2021, when they shot up due to the optimism of leaving behind the restrictions due to Covid-19.
The growth of investments from Uruguay had a positive impact on the overall percentage increase in investments originating in Latin America and the Caribbean, which grew by 136%. Uruguay was one of the main investors in the region in Brazil, contributing 18% of them. Likewise, there were minor investments in Ecuador and Dominican Republic.
At the same time, together with the Bahamas it was established as “a market where financial intermediation companies have a prominent role in cross-border capital movements”according to ECLAC.
Uruguay is a capital transit country for foreign investment in Latin America
During 2022 there was a flow of foreign direct investment abroad from Uruguay for 6,051 million dollarsa jump from 219.6% with respect to 2021, and a share of the total regional FDI of the 8.1%. Uruguay often operates as a “transit country” for capitalwithout necessarily the money being Uruguayan or from local companies.
Most of the FDI, a 52%was due to intercompany loans, while the reinvestment of profits was the second most important segment, registering a 37% of the total. Likewise, the FDI podium was completed by income from capital contributions in a eleven%.
The country, along with Chilialso managed to position itself as a success story in terms of attracting investment in renewable energy, such as wind and photovoltaic.
Source: Ambito
