2014: 16% less Foreign Direct Investment in Latin America

New report|Foreign direct investment in the region fell 16% in 2014 after a decade of strong expansion

Flows of Foreign Direct Investment (FDI) towards Latin America and the Caribbean declined 16% in 2014 to a total of US$158.80 billion. This result reverses the growth trend seen during the last decade—with the exception of declines in 2006 and 2009—since a further reduction is forecast for this year. In 2014, FDI inflows were affected by the region’s economic deceleration and lower prices for its raw material exports, according to the annual report Foreign Direct Investment in Latin America and the Caribbean 2015 released on May 27. Between 2003 and 2013, these flows expanded from US$46.94 billion to a nominal record of US$189.95 billion. Worldwide, FDI fell 7% in 2014 versus the previous year, although inflows to developing countries rose 5%, mainly due to Asia’s performance. The participation of Latin America and the Caribbean in these global flows reached 13%.