FDI grew again and reached 6.7% of GDP, according to the balance of payments report of the Central Bank of Uruguay.
The foreign direct investment(FDI) in Uruguay reached 6.7% of the GDP during the third quarter and is at the highest levels of the last decade, according to data provided by the Central Bank of Uruguay (BCU).
The report on the balance of payments prepared by the BCU He specified that in the July-September period, a net inflow of funds of 958 million dollars was recorded, of which 1,670 million were linked to financial flows related to the direct investment, followed by the portfolio investment, with 112 million, and to a lesser extent the financial derivative flows, for 5 million dollars.
The situation was highlighted by economists, such as the member of the Fiscal Advisory Council (CFA), Ignacio Umpiérrez, who highlighted from his
The independent analyst and consultant said something similar José Licandro, who in the same way assured that there was “risk investment and no swallow financial capital.”
The impact of investment on the value of the dollar
Along these lines, he referred to the value of dollar, that closed the year with a delay of 2.62% compared to the end of 2022, and questioned that “some continue to hold the BCU responsible for the ‘exchange delay’”.
When delving into the possible impact of this dollar income, he considered that “it is one more factor that helps understand the movements of the exchange rate in an economy where the currency floats”, although he admitted that although a FDI of that magnitude “involves the entry of many currencies, we do not know how many of those will be sold to the exchange market.”
Foreign direct investment had great growth last year
It is worth remembering that last year the FDI grew 155% year-on-year, according to a report from the Economic Commission for Latin America and the Caribbean (ECLAC), which recorded capital inflows of 9,325 million dollars in 2022, representing 4.4% of the total in South America.
The direct investments They exceeded those of 2021 by 5,668 million dollars, which represented 3,657 million dollars, and by 8,799 million dollars those of 2020, a year strongly affected by the pandemic, when that amount was just 526 million dollars.
Source: Ambito
