The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) has released its latest report on Foreign Direct Investment (FDI). According to the organization, Latin America and the Caribbean received a record-breaking $224.579 billion dollars in FDI in 2022, representing a 55.2% increase compared to 2021.

ECLAC is a United Nations regional commission comprising 46 member states, including 20 from Latin America, 13 from the Caribbean, and 13 from outside the region.

The report reveals that nearly all countries in Latin America and the Caribbean experienced an increase in FDI in 2022. Leading the list is Brazil, which received 41% of the regional total and ranks as the 5th largest global destination for FDI. Mexico follows with 17%, then Chile with 9%, Colombia with 8%, Argentina with 7%, and Peru with 5%.

At the regional level, 54% of Foreign Direct Investment was directed towards the services sector. However, both the manufacturing and natural resources sectors also experienced a rebound. Within the services sector, the report highlights investments in financial services, electricity, natural gas, water, information, communications, and transportation-related services.

During a press conference in Santiago, Chile, ECLAC's Executive Secretary, José Manuel Salazar-Xirinachs, stressed the importance of attracting and retaining FDI that contributes effectively to sustainable and inclusive productive development in the region. He stated that there are new opportunities in the context of global value chain reconfiguration and geographic relocation of production due to changing globalization – we recently discuss here on REsource the nearshoring trend.

Salazar-Xirinachs emphasized that the challenge is not only to attract and retain FDI, but also to maximize its contribution to development. To achieve this, countries should focus on post-establishment productive development policies, including the promotion of productive linkages, value chain expansion, human resources development, plus infrastructure and logistics improvement.

ECLAC highlights that the global FDI scenario in 2022 was diverse. While Latin America, the Caribbean, and other regions experienced growth, FDI inflows decreased in the United States and some European Union countries. Overall, global FDI inflows declined by 12% compared to 2021, amounting to $1.29 trillion dollars.

Foreign investments in the real estate market

While investments in the region are breaking records, SiiLA has been monitoring the presence of international players in the commercial real estate market of the region. In all countries monitored by the platform, there are global companies investing in offices, logistics warehouses, and shopping centers in the region. Discover all of SiiLA's solutions at siila.com.br.