Likewise, the organization led by the Costa Rican José Manuel Salazar-Xirinachs warned that the outlook for 2022 “it is of enormous uncertainty”, with a “deterioration of expectations” and an “acceleration of inflation in the region and the world”.
“The great uncertainty regarding the duration and consequences of the war in Ukraine make it extremely difficult to estimate the behavior of FDI inflows in Latin America and the Caribbean in 2022,” he pointed out.
Argentina remained in sixth place in 2021 among the countries of Latin America and the Caribbean for the amounts of FDI received, in a list headed by Brazil ($46,441 million), followed by Mexico ($33,439 million). million), Chile ($15,252 million), Colombia ($9,727 million) and Peru ($7,455 million).
The weight of FDI inflows in the region’s product reached 2.9%, a performance that “is still below that observed during the 2010s,” in which it averaged 3.5%.
“Considering that FDI inflows had already been on a downward trend since 2014, this weak recovery shows how difficult it is for the region as a whole to reposition itself as an attractive destination for the establishment of new operations by transnational companies,” ECLAC indicated.
These drawbacks arose “after the commodity price boom cycle and high growth rates ended”, and were reflected in 2021 with a reception of 9% of world FDI, “one of the lowest percentages in the last ten years and far from the 14% registered in 2013 and 2014,” the report detailed.
Cepal highlighted that “the reactivation of investments in 2021 occurred in all subregions (South America, Mexico, Central America and the Caribbean) and that the countries that received the most investments were Brazil (33% of the total), Mexico (23 %), Chile (11%), Colombia (7%), Peru (5%) and Argentina (5%).
The annual rise of 40.7% was influenced by “the high growth of FDI in Chile (66%) and Peru (919%) in South America and Guatemala (273%) and Panama (163%) in Central America” , specified the agency.
Source: Ambito
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