Chile Leads at 40th: Latin America’s Uneven Performance in Global Opportunity Index

The Milken Institute released its 2025 Global Opportunity Index report on March 11, highlighting Latin America and the Caribbean’s remarkable investment appeal.

The region attracted nearly half of all foreign direct investment flowing to emerging economies in 2023. Chile leads Latin American countries at 40th position globally, followed by Uruguay (44th) and Costa Rica (47th).

These nations benefit from market-oriented policies, strong institutions, and sustainable growth environments. Mexico and Brazil, the region’s largest economies, ranked 62nd and 68th respectively, while Colombia secured the 69th position.

The index evaluates investment opportunities through nearly 100 variables organized into five categories. These include Business Perception, Financial Services, International Standards & Policy, Economic Fundamentals, and Institutional Frameworks.

Latin American countries excel in three dimensions compared to other emerging regions. Their strengths lie in Future Environment of Growth, Workforce Talent, and Financial Size Conditions.

Costa Rica and Uruguay lead in potential for sustainable growth, benefiting from vast natural resources and relatively equitable societies. Investment announcements targeting the region grew by 16% to $115 billion in 2023.

Latin America’s Investment Growth

This growth came primarily from megaprojects in renewable energy, metals and minerals, and the automotive sector. The rise of critical minerals for clean energy technologies drove significant investment, accounting for 23% of greenfield projects over the past two years.

Brazil maintains its position as the primary destination for capital, attracting 36.5% of regional inflows from 2021 to 2023. Meanwhile, Colombia stands out for maintaining stable FDI flows since 2014, representing 6.2% of its GDP.

Despite this positive outlook, the region faces ongoing challenges. Countries continue to grapple with income inequality, weak governance, security concerns, and climate vulnerabilities.

Declining fertility rates also create labor market pressures, requiring innovative workforce expansion strategies. These investment trends suggest Latin America continues to strengthen its position in the global investment landscape, particularly in sectors driving the energy transition.