SANTIAGO DE CHILE._ The Economic Commission for Latin America and the Caribbean (ECLAC) has revealed that the flow of foreign direct investment (FDI) into the region fell by 16 percent in 2014.
In its annual report on FDI in Latin America and the Caribbean, ECLAC indicated those funds amounted to 158.8 billion dollars, with a reverse in growth trends observed
over the preceding decade.
The Santiago de Chile-based United Nations agency is forecasting a further decline during this year.
In 2014 inward FDI was affected by an economic slow down in the area and lower prices for export commodities.
ECLAC recalled that between 2003 and 2013 the inward flow had, in nominal terms, risen from 46 billion, 937 million to a record 189 billion, 951 million US dollars.
It said that Latin American and Caribbean nations should not aspire to recovering the rates of foreign direct investment of the past decade, but rather to draw FDI that contributes to the diversification of production.
ECLAC executive secretary, Alicia Bárcena, commented that “this means linking FDI to industrial policies and national development strategies based on equality and environmental sustainability.“
The agency noted that Brazil -- with 62, 495 million dollars -- remains the largest recipient of foreign direct investment in the region, followed by Mexico, with 22,795 million.
Next is Chile with 22,002 million dollars, then Colombia (16,054 ) and Peru (7,607 million dollars).
By sub-region, FDI in South America and Mexico dropped significantly in 2014, while the decline in the flow into Central America and the Caribbean was much less.
The ECLAC study reveals a notable decline -- from 23 to 17 percent -- in the natural resource sector, while manufacturing remained stable, accounting for 36 percent of the total and the services sector rose to 47 percent.
In 2014 the major investors abroad were Chile (12 billion 52 million dollars), Mexico (7,610 million), and Peru (4,452 million).Share on FB Share on TT