This post is a summary of two reports published at ECLAC.org. The first on 3 May,2012 with the title, " Latin America and Caribbean received us$ 153 billion from foreign direct investment in 2011." The second, on 23 October, 2012, with the title " Foreign direct investment rises 8% in the region during the first half of 2012.
L. A. and C. received us$ 153.45 billion from foreign direct investment ( F.D.I. ) in 2011. Which represent 10% of the global total flows, according to a report by the ECLAC. This is about the largest amount of F.D.I. received by the region so far, until then, the highest record had been in 2008, when F.D.I. amounted to us$ 137 billion. In 2011, the main recipients in the region were Brazil ( us$ 66.6 billion, 43.8% of the total ), after comes Mexico ( us$ 19.4 b ), Chile ( 17.3 b ), Colombia ( 13.2 b ), Peru ( 7.6 b ) and Argentina ( 7.2 b ).
In 2011, 46% of the net income deriving from F.D.I. was due to profit re-investments. As shown in the report, this trend, which started in 2002, is a result of the amount of assets accumulated by transnational companies in the region and an increase in their profitability due to the good economic performance of the countries and high prices of raw materials.
Also, the document points out that F.D.I. strengthens the specialization of production in L.A., in 2011, 57% of F.D.I. received by South America ( except Brazil ) were directed to the natural resouces sector. Meanwhile, 46% of F.D.I. received by Brazil were to manufacture and 44% to services.
" In this context, it is urgent to promote policies to guide F.D.I. and leverage its potential benefits, among which are the knowledge and technological exchange, creating production chains, building human capacity and fostering local entrepreneurial development," emphasized the U.N. official.
Inflow of F.D.I. to 17 in the region`s countries rose by 8% in the six months of 2012, compared with the same period of the year earlier, to stand at 94.3 billion dollars, according to figures released by the ECLAC. At the same time, investment by L.A. enterprises abroad or also known as trans-latins surged by 129% in the same period.
The rise in F.D.I. income is attributable to economic buoyancy and stability in most countries and high commodity prices, which continue to incourage investment in mining and hydrocarbons ( particularly in South America ). The strong climb in investment in Chile, Argentina, Peru and Colombia give an overalll positive result. this combines with stable flow to Brazil ( which dipped by 2% ) which accounts for 46% of the F.D.I. received by the region in 2012 and makes it the main recipient in L.A.
Chile is also consolidating its position as the second recipient in the L.A.while Mexico is in the third largest recipient in the first half of 2012. The largest positive variations in the first half of 2012, in L.A were: Chile +80% and Bolivia +53%. The largest negative variations were: El Salvador -60% and Venezuela -20%.
