Latin American Investment Increases

Latin-Am
Latin America receives major financial investments, but does it work both ways?

 

Latin America FDI Increases 31% to $150 Billion– Are These Investments Being Reciprocated to the US?

Despite global economic uncertainty, foreign investments are once again flowing into Latin America. In 2011, Latin America and the Caribbean received $153.4 billion in foreign direct investment (FDI). But while foreign investors bet on Latin AmericaÂ’s future economic success, the region is slow to reciprocate investments overseas. FDI outflows from Latin America and the Caribbean dropped to $22.6 billion, a 49.6 percent slump from 2010.

What motivates foreign Hispanic business investments and why are these investments not being reciprocated?

According to Alicia Bárcena, executive secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), Latin American and Caribbean economies remain attractive investment opportunities despite global financial uncertainty.

Bárcena predicts that FDI will remain high in 2012. Latin America and the Caribbean received 10 percent of global FDI in 2011. Nearly half of all investments went to Brazil, with the country receiving $66.6 billion or 43.8 percent. Mexico ($19.4 billion), Chile ($17.29 billion) and Colombia ($13.23 billion) round out the top four. Brazil, Chile, Colombia, Peru and Uruguay all experienced record highs in FDI.

The repatriation of profits from foreign transnational corporations is a major source for Latin American investments. FDI revenue transferred back to country of origin increased from $20 billion per year in 2003 to $84 billion per year in 2010.

 

 

 

 

Hispanic Business Opportunities in Latin America

 

In response to this increased capital, Latin American countries are strengthening the capacity of national innovation systems. Hispanic markets including Brazil, Chile, Mexico and Colombia are all working to foster entrepreneurial development while strengthening supply chain infrastructure.

Mexico, Brazil, Argentina, Chile are considered “strength” countries for FDI by many companies. These countries are the most politically stable, bring the largest return on investment and offer the greatest opportunities for expansion.

RELATED POSTS

Latin Biz Today Celebrates International Women’s Day

Latin Biz Today Celebrates International Women’s Day

Here's a sampling of dynamic women who are balancing Work Life Culture and Making a Difference!   Spotlight on Latina Women’s Health Entrepreneur Isa Herrera [Video] Latin Biz Today, partner Tina Trevino sits down with health industry entrepreneur. "Today, I interview...

Hispanic Business Leadership for Uncertain Times

Hispanic Business Leadership for Uncertain Times

How to make delusional optimism work for your Hispanic business this year Congratulations to you and your business if you are in a position to grow your business and bring in a new employee as we progress into this new year. Thank you for your decision to take the...

Latinos Need to Make Learning a Key Priority of Their Small Business

Latinos Need to Make Learning a Key Priority of Their Small Business

Many Latinos believe that the “American Dream” rests in the ownership of a small business Not strangers to hard work and strong work ethics, many Hispanics have launched businesses of their own which has given the U.S. economy a tremendous boost and have given Latino...

Video Gallery

Polls

Sign Up for the Latin Biz Today Newsletter

PR Newswire

Innovation & Strategy

Money

Talent/HR

Legal

Marketing

Culture

Fashion

Food

Music

Sports

Work & Life

Mindfulness

Health & Fitness

Travel & Destinations

Personal Blogs

Pin It on Pinterest