Latin American Foreign Investment to Drop in
2009
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Latin American Foreign Investment to Drop in
2009
Santiago de Chile, - Direct foreign
investment (DFI) in Latin America reached a
historical record in 2008, but may fall
35-45 percent in 2009, announced the
Economic Commission for Latin America and
the Caribbean.
The DFI went off the charts at 128.301
billion dollars in 2008 in spite of the
economic crisis.
DFI currents in the region surpassed 13
percent in 2008 as compared to the previous
year although this represents a deceleration
in relation to 52 percent of growth in 2007
informed Alicia Barcena, executive secretary
of the ECLAC.
According to the ECLAC report high prices
for basic products and growth of some of the
development economies explain that increase.
Another figure of interest is that
developing countries increased their
participation as receptors of world DFI
representing 31 percent in 2007 and 39
percent in 2008. The main receptor regions
were Asia and Oceania with 21 percent and
eight percent in Latin America and the
Caribbean.
South America received 24 percent more DFI
in 2008 (89.862 billion dollars) boosted by
the high prices of basic products and sub
regional economic growth although flows to
Mexico and the Caribbean fell five percent.
Also, Brazil, Chile and Colombia were the
main receptors of South America
concentrating80 percent.
According to ECLAC "the strong relationship
of Mexico and the Caribbean with US economy
had a negative impact on the flow of FDI to
the region."
The United States she added "discouraged the
manufacturing export industry and tourism."
Flows to the Caribbean increased 42 percent
through the DFI registered in the Dominican
Republic and Trinidad and Tobago that
compensated the fall in other countries of
the region.
In relation to the GDP, the DFI demonstrates
greater importance for small countries, such
as those in the Caribbean.
The report informs that the United States
and Spain were the main investors in the
region during 2008 but reduced their
relative participation. Canada and Japan
increased their presence.
Although ECLAC expects a fall in 2009
incomes should rise in average as compared
to the period between 2001 and 2006.
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