Foreign direct investment in LatAm soared 55% and reached its highest historical value in 2022

According to the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), Latin America’s foreign direct investment (FDI) experienced significant growth in 2022, reaching its highest recorded value.

The region received a total of US$224.579 billion in FDI, marking a 55% increase compared to the previous year.

ECLAC highlighted that this milestone was the first time since 2013 that FDI surpassed the US$200 billion mark in Latin America.

The growth was observed across all FDI components, particularly in the reinvestment of profits and the services sector, indicating a recovery from the impacts of the COVID-19 pandemic.

Examining the breakdown, nearly all countries in the region attracted more FDI compared to 2021.

Brazil led the list, receiving 41% of the total FDI and ranking as the fifth most popular global investment destination.

Mexico followed with 17%, Chile with 9%, Colombia with 8%, Argentina with 7%, and Peru with 5%.

The services sector received the largest share of the investment, accounting for 54% of the total and showing the most improvement.

Manufacturing, electricity, gas and water production, financial services, information and communication, and transportation followed it.

The primary investors in the region were the United States, contributing 38% of the total FDI, and the European Union, with 17%.

Additionally, FDI from countries within the same region increased from 9% to 14%.

ECLAC also emphasized the growth of investment in renewable energy and urged regional countries to develop public policies to attract foreign investment in this sector.

They emphasized that such investments can play a significant role in driving productive transformation in the region.

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