Foreign investment in Latin America declined for the third year in a row

For this year, CEPAL expects the flows to remain stable around what was recorded in 2017, which means that the negative figures would remain.

Foreign Direct Investment (FDI) in Latin America and the Caribbean decreased in 2017 for the third consecutive year, reported on Thursday the Economic Commission for Latin America and the Caribbean (ECLAC).

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In a report, the agency said that FDI had dropped by 3.6 % last year to reach 161.673 million dollars.

Despite an international context of stronger growth in the global economy, high international liquidity, high profits in large companies, and optimistic markets. "

CEPAL said that FDI in 2017 was 20% lower than or received in 2011 and that this trend is explained" by the drop in prices of export products and the 2015 and 2016 recession, mainly in Brazil. "

In most countries of the region, FDI has increased, although there have been significant declines in three of the largest economies: Brazil, where it dropped 9.7%, Chile, where it dropped 48%, and Mexico, where it dropped by 8.8%.

ECLAC said that the main sources of FDI in the region were the European Union and the United States

"The prevalence of Europe is particularly sensitive in South America. that the United States remains the main investor in Mexico and Central America, "he said.

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ECLAC predicts that this year , The IDE remains stable around what was recorded in 2017.