The Three Latin American Countries Attracting Investors and Revealing their Million-Dollar Figures
The arrival of foreign direct investment (FDI) serves as a key indicator of confidence in emerging economies, with data from 2024 highlighting three countries that are capturing the attention of global investors. Despite the record figures, the type of investment and sectors involved provide insight into the future of the regional economy.
Uneven Growth in Foreign Investment
FDI increased by 7.1% in 2024, reaching US$189 billion, equivalent to 2.8% of the regional GDP. However, much of this increase is attributed to the reinvestment of profits by established companies rather than the arrival of new investments. Experts note a limited interest from multinational companies in establishing themselves in the region, despite the confidence shown by some economies.
Peru, the Great Magnet for Fresh Capital
Peru stands out with a 57% growth in FDI, receiving new capital contributions exceeding US$6.8 billion. Economic openness in key sectors such as mining, energy, and infrastructure, along with the global recovery of commodity prices, drove this increase. Investments in projects like a road in Lima, a green ammonia plant, and the expansion of the Antamina mine have reinforced international confidence in the country.
Mexico and Brazil: Reinvestment and Manufacturing as Drivers
Mexico experienced a 48% increase in FDI, primarily due to reinvestment from existing companies and the nearshoring trend, favored by its proximity to the United States amid trade tensions. The manufacturing sector was the main recipient of investments, with countries like the United States, Japan, and Germany leading the way.
Brazil also saw a 14% increase in foreign capital, largely through reinvestment, with a focus on the manufacturing industry related to petroleum derivatives, biofuels, and coke. Analysts view these figures positively, as this type of investment tends to create jobs and add value to national production.
On the other hand, countries like saw a significant decrease in foreign capital inflow, underscoring the regional disparity and the challenges Latin America still faces in attracting new and sustainable investments.
