Benefiting from the global economic recovery following the COVID-19 pandemic, Latin America and the Caribbean recorded an increase in foreign direct investment (FDI) in 2022, reaching a historic high, as announced by the Economic Commission for Latin America and the Caribbean (ECLAC). Last year, the region attracted US$ 224.58 billion in foreign investments to its productive sectors, representing a remarkable increase of 55.2% compared to 2021.
In terms of distribution among countries, Brazil emerged as the main destination, capturing 41% of the total FDI inflow in the region. Mexico followed closely behind in second place, attracting 17%. Both countries are the largest economies in Latin America and the Caribbean. Brazil experienced nearly double the FDI growth from 2021 to 2022, with an impressive increase of 97%, while Mexico recorded a more moderate growth of 14% compared to the previous year.
Unlike financial investments that primarily target the financial market, foreign direct investments seek to generate job opportunities, such as through the acquisition of national companies or the expansion of foreign companies into new countries. ECLAC highlights that the sectors that benefited the most last year were services, renewable and non-renewable energy, and manufacturing.Low Attraction
Last year, the global volume of FDI totaled US$ 1.29 trillion, an 11% increase compared to 2021. Despite the growth, Latin America attracted only 8% of the global foreign direct investment flow in 2022. Proportionally, the region had the lowest share, behind Europe, Asia-Pacific, Africa, the Middle East, and North America.Source: Agência Brasil