Foreign direct investment (FDI) in Latin America and the Caribbean this year could fall as much as 3% or jump by up to 7% after leaping to a record in 2012, the UN’ body for the region said yesterday.
The region’s FDI expanded 6.7% last year from 2011 levels to a record $173.361bn, the UN Economic Commission for Latin America and the Caribbean (ECLAC) said in a report.
But global economic uncertainty curtailing capital flows threatens to dampen investment in the region this year.
Robust economic growth, high commodity prices and explosive domestic demand have lured high levels of capital to much of Latin America in the past decade.
The region’s economy is likely to grow by 3.8% in 2013, less than previously forecast, as slower growth in Mexico weighs against a recovery in Brazil, Argentina and the region’s brisk domestic demand, Santiago-based ECLAC said in December.
“The foreign direct investment results attest to the good current performance of the Latin American economy,” ECLAC executive secretary Alicia Barcena said.