Thursday, October 13, 2011

Latin America was the region with the strongest growth in FDI in 2010.

     This report was published in the ECLAC webpage in 4 may 2011, and the complete title including also Caribbean, but like the own report said the growth was only in L.A. This is a summary.


    

      In 2010, L.A. was the region with the strongest increases as a recipient of FDI ( Foreign Direct Investment), according to a report presented by ECLAC. Last year, the region`s FDI inflows were 40% higher than in 2009.

      In a context of falling foreign investment in developed countries ( -7% ) and rising investment in developing countries ( +10% ), L.A. increased its share of the recipient market from 5%  to 10%  between 2007 and 2010.
      For 2011, FDI flows to L.A. are expected to maintain this trend and increase by 15% to 25%   which could take them to unprecedent high levels, according to the projections of the report luanched by ECLAC.

       Nevertheless, the ECLAC officials did emphasize that ¨ in order to improve the capacity to absorb the benefits of such investment, L.A. need to implement productive development policies focused on innovation and local capacities to promote the creation of quality employment¨.
       According to the report FDI in L.A. in 2010, the region`s main recipient were:  1º) Brazil  48,462 billion.
2º) Mexico  17,726 b.    3º) Chile  15,095 b.    4º) Peru  7,328 b.    5º) Colombia  6,760 b.
       U.S.A. remains the main investor and was responsible for 17% of  total FDI , second Netherlands 13%, China  9% , fourth: Canada and Spain with 4%.
       The main recipient sector in South America were the natural resources with 43% and services 30%.

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