In a new edition of its flagship annual report “Economic Survey of Latin America and the Caribbean,” the United Nations organization underlines the challenges of reactivating investment and growth in a context of growing external and domestic restrictions.
The structural problems of Latin American and Caribbean economies and new international scenarios make it essential for FDI to contribute to driving development with equality and environmental sustainability in the region, ECLAC says in its annual report on this topic.
In an international context of reduced flows and strong competition, national policies must attract FDI that contributes to creating local capacities and fostering sustainable development, ECLAC says in its annual report.
ECLAC presents its Economic Survey of Latin America and the Caribbean, highlighting the importance of expanding fiscal space and reorienting investment, productivity and monetary policies to spur the economies of countries in the region.
According to ECLAC, rather than trying to recover the FDI amounts seen in recent years, Latin American and Caribbean countries should focus on attracting those flows that will contribute to the diversification of production.
El organismo prevé una alta heterogeneidad entre países, debido a la evolución dispar de los principales socios comerciales de América Latina y el Caribe y a factores específicos de las economías nacionales.
En su Balance Preliminar de las Economías de América Latina y el Caribe el organismo prevé un entorno externo más favorable, pero con persistencia de volatilidad financiera y nuevos desafíos de política macroeconómica.
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.