In 2023, Spain confirmed its status as a prime destination for Latin American investors, doubling their investments to $3.051 billion.
Elisa Carbonell from ICEX and Andrés Allamand, Ibero-American Secretary General, showcased this in the Global LATAM 2024 report.
During the presentation, they stressed Spain’s strategic role as a gateway to Europe and North Africa for these investments.
This surge enhances the longstanding economic connections between Spain and Latin America, benefiting both regions.
Latin America now ranks as Spain’s fourth-largest foreign investor, surpassing giants like the United States and the United Kingdom.
These investments have notably created 47,000 jobs across over 600 companies.
Total Latin American investments reached nearly $50.749 billion, with an additional $21.239 billion funneled through Spanish holding companies (ETVEs).
This accounts for 11% of Spain’s total foreign investments.
Spain is a primary destination for Latin American investment, and it is also the top recipient of Spanish capital.
Between 1993 and 2022, Spain has invested $148.22 billion in the region.
In 2023, Mexico became Spain’s fifth largest investor, directing $1.770 billion into key sectors like food, chemicals, minerals, and construction.
Honduras, Argentina, and Uruguay also made significant contributions, injecting capital and diversifying Spain’s economic scene.
Latin American Firms Double Investments in Spain
Despite a 38% drop in Latin America’s FDI in 2023, due to high-volume one-time transactions, the commitment to Spain remains steadfast.
This enduring investment interest persists despite global challenges such as geopolitical tensions and rising interest rates.
The technology sector is a major focus for Latin American investments due to the growth of service companies and emerging startups.
Investments in climate change have also increased, with significant funds directed towards decarbonization and clean energy.
Latin American investors appreciate Spain’s investment environment, drawn by cultural ties, strategic position, and market access.
Most firms anticipate boosting investments and expect substantial sales growth locally and worldwide in 2024 and 2025.
This active investment environment underscores a prosperous relationship benefiting both regions economically.