It is necessary to articulate productive development policies with the attraction of high productivity investments, Salazar-Xirinachs said
Despite a 40.7% growth from 2021, Foreign Direct Investments (FDI) in Latin America continue to be below the levels recorded before the COVID-19 pandemic, according to a report released Tuesday in Santiago by the Economic Commission for Latin America and the Caribbean (ECLAC).
”This weak recovery shows how difficult it is for the region as a whole to reposition itself as an attractive destination for the establishment of new operations of transnational companies, after the end of the boom cycle of the price of raw materials and (of) high growth rates, ECLAC’s report stated.
The region also lost its share as a destination for global investments, representing 9% of the total, one of the lowest percentages in the last ten years and far from the 14% recorded in 2013 and 2014.
Projections are far from encouraging. The region received US$ 142.794 billion in FDI in 2021, 40.7% more than in 2020. However, these levels are still 9.55% below 2019’s US$ 157.689 billion.
As a whole, Latin America and the Caribbean accounted for only 9% of total global FDI, one of the lowest percentages in the last ten years and far from the 14% recorded in 2013 and 2014. In other words, even if 2021 is considered a year of recovery, the trend of almost uninterrupted fall identified in Latin America and the Caribbean since 2012 is not modified; given the global outlook for 2022, it is possible that this fall will continue, the ECLAC document cited in its conclusions.
In a region with low overall levels of investment, foreign direct investment is fundamental for the design of a productive policy,” ECLAC Executive Secretary José Manuel Salazar-Xirinachs said in the report.
Brazil (33%), Mexico (23%), Chile (11%), Colombia (7%), Peru (5%), and Argentina (5%) were the countries to receive the most FDI in 2021.
In addition to Brazil, which always has a high incidence due to the size of its economy, the high growth of FDI in Chile (66%) and Peru (919%) in South America and Guatemala (273%) and Panama (163%) in Central America, explained most of the variation year on year, according to ECLAC.
The main investors came from the European Union and the United States, representing 36% and 34% of the total, respectively. Meanwhile, the number of mergers and acquisitions increased by 33%, which remains one of the lowest levels of the decade.
In a global context in which mergers and acquisitions grew very significantly, in the region they only recovered from the fall that occurred in 2020, ECLAC noted.
Foreign investors are particularly interested in electricity, gas, water, telecommunications, and oil refining.
In Central America, Costa Rica was the main recipient of foreign funding for the second consecutive year, while Guyana did the same in the Caribbean, with the arrival of the oil capital, surpassing the Dominican Republic, the leader in previous years. Guatemala’s large-scale acquisition in the telecommunications sector was also highlighted.
To achieve a positive impact of Foreign Direct Investment, it is necessary to articulate productive development policies with the attraction of high productivity investments, in activities that support virtuous development processes in terms of inclusiveness, employment quality, environmental sustainability, innovation, and technological complexity, Salazar-Xirinachs also said.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
