Although the entry of foreign direct investment (FDI) in the region contracted during the first six months of 2023 – around 15%, according to IDB data -, the expansion previously experienced in 2022 – 45% also during the first semester – meant that the impact was not significant. greater magnitude. Ecuador, Pebru and Brazil were the countries that had the largest contractions.
Likewise, the energy, mining, manufacturing and services sectors were the main destinations of investments, while USA and the European Union (EU) —with special participation of Spain- They were the main partners of the continent. China It also played a fundamental role in investments in Latin American and Caribbean countries.
Uruguay, For its part, it managed to comfortably enter the top 10 countries in the region that chose to invest in its neighboring countries: occupying fifth place, it was behind only Brazil, Mexico, Argentina and Chili.
In addition, it was also positioned as one of the five countries that invested the most, particularly in Argentina in the accumulated 2023, along with Brazil, Germany, Spain and the United States. Although the IDB report does not specify the destination of the investments made in the neighboring country, it is worth remembering that this year there will be for the first time negative tourist balance due to the consumption diversion generated by the exchange difference.
How was trade in the region?
The IDB report also worked on the performance of the International Trade and of the exports of Latin America and the Caribbean.
In this sense, the study recorded that the value of global exchange of goods had an interannual drop of 6% between January and September 2023. The reasons were both the decrease in prices – they fell by 4% during the period considered – and the reduction in the quantities placed – which fell by 2%.
The World Trade Organization (WTO) and the International Monetary Fund (IMF) They estimate, however, that 2023 will close with an expansion in world trade of between 0.8% and 0.9% in real terms, which would imply a rebound in the latter part of the year.
Meanwhile, by 2024 the IDB projects a recovery in the volume of global exchange of between 3.3% and 3.5%. In this context, the value of exports of goods from Latin America and the Caribbean decreased by 3% year-on-year in the accumulated amount as of September 2023, mainly due to the contraction in prices.
The value of the commodities —without great expectations and vulnerable to climatic phenomena such as The boy- It is one of the warning points indicated by different economic and financial institutions in the world for 2024, and that in Uruguay will have a great impact due to the importance of agricultural products in the balance of trade —and the particular performance that the Chinese economy, the main buyer of these goods, may have.
Source: Ambito
