Foreign direct Investment in Latin America and the Caribbean 2010
Unit on Investment and Business Strategies, Division of Production, Productivity and Management
In 2010 the Latin American and Caribbean region showed great resilience to the international financial crisis and became the world region with the fastest-growing flows of both inward and outward foreign direct investment (FDI). FDI inflows were up by 40% with respect to 2009 and stood at a total of US$ 113 billion. Outflows increased almost fourfold to reach an all-time high of US$ 43 billion, reflecting the strong growth of trans-Latin firms. The upswing in FDI in the region has occurred in a context in which developing countries in general have taken on a greater share in both inward and outward FDI flows.
This briefing paper is divided into five sections. The first offers a regional overview of FDI in 2010. The second examines FDI trends in Central America, Panama and the Dominican Republic. The third describes the presence China is beginning to build up as an investor in the region. Lastly, the fourth and fifth sections analyse the main foreign investments and business strategies in the telecommunications and software sectors, respectively.
The Commission predicts that FDI will rise by between 15% and 25% in 2011 compared with 2010, but points out that the region should implement policies focused on innovation in order to better absorb the benefits of investment flows.