Photo: Central and South America Saw Increase in Foreign Investment in 2010
A report from the United Nations is showing an increase of 40 percent in foreign direct investment in Latin America, which adds up to about $113 billion.
Brazil in particular saw a big jump in foreign entity investments. Following the South American country was Mexico.
In South America alone, foreign investment increased by 56 percent ($85.1 billion). This was driven by investors looking to take advantage of Brazil’s domestic market and get in on commodities like copper and oil. The U.N. predicts that the country’s foreign investments will easily top $50 billion in 2011. In 2010, it reached $48.5 billion, which was 87 percent more than in 2009.
Overall, the U.N. said Latin American and the Caribbean showed the strongest growth of an region.
In Mexico, foreign investment rose 17 percent, to end the year with an additional $17.7 billion from the year before. Most of which went to manufacturing. Alicia Barcena, executive secretary of the U.N. Economic Commission for Latin America and the Caribbean (ECLAC) expects that to top $20 billion this year.
While the foreign investments in Central and South America rose overall, Colombia, Ecuador, and El Salvador were the only countries that did not see an increase. In fact, they saw a decrease. The Caribbean also saw investment flows drops with the exception of Haiti, which, following the 2010 earthquake, saw a 303 percent jump.