São Paulo – In 2011, Latin America and the Caribbean had the highest levels of growth in foreign direct investment (FDI) flows in the world, alongside East and Southeast Asia countries, according to the World Investment Report 2012 issued last Thursday (5th) by the United Nations Conference for Trade and Development feira (05). Global international flows reached US$ 1.5 trillion in 2011, up 16% from 2010.
Brazil played a key role in that performance, for it was by far the Latin American country which received the highest inflows. The region received US$ 217 billion in FDI last year, up 16% from 2010. Brazil received US$ 67 billion, up 37%.
According to the Unctad, the country’s attractiveness is justified by the size of its consumer market and its strategic placing, near other countries with strong growth potential such as Argentina, Chile, Colombia and Peru.
Besides, according to the report, foreign investment in South America has been yielding strong returns since 2003. FDI inflows to the subcontinent were up 34% last year.
Said return is providing relief to United States and European companies active in South American countries, especially Brazil. In the last few years, however, the share of global investment retained by companies based in other emerging countries and Japan has grown.
Unctad claims that the region should remain attractive, despite the European crisis and uncertainties regarding the world economy. Contributing factors include natural resource availability and the growth perspectives of nations in the continent.
*Translated by Gabriel Pomerancblum
