Foreign direct investment in Latin America drops 21% in the first half of 2015

15 October 2015

Foreign direct investment decreased by 21% in Latin America during the first six months of the year, mainly due to the drop in inflows in the mining sector and lower international oil prices.

According to the update released today of the data from the Economic Commission for the region (ECLAC), the slowdown in China and the negative growth in Latin America, estimated at -0.3% for this year, have also been important factors.

ECLAC indicated that in the first half of 2015, foreign direct investment inflows fell 21% in 16 Latin American countries with respect to the same period of the previous year, reaching 88,717 million dollars.

Brazil leads the decline in the region with a fall of -36% from January to August caused by the reduction in domestic demand and the negative prospects for an increase in GDP, explained ECLAC.

He added that Mexico, the second recipient of foreign direct investment in the region, received 8% less compared to the first half of 2014. In Chile these flows decreased 10% and in Argentina 11.5%.

Central America was the only subregion where these investments increased, with El Salvador, Honduras and Panama leading the way.

With regard to foreign direct investment leaving Latin America, ECLAC reported a -7% drop from January to June of this year.

15 October 2015

Foreign direct investment decreased by 21% in Latin America during the first six months of the year, mainly due to the drop in inflows in the mining sector and lower international oil prices.

According to the update released today of the data from the Economic Commission for the region (ECLAC), the slowdown in China and the negative growth in Latin America, estimated at -0.3% for this year, have also been important factors.

ECLAC indicated that in the first half of 2015, foreign direct investment inflows fell 21% in 16 Latin American countries with respect to the same period of the previous year, reaching 88,717 million dollars.

Brazil leads the decline in the region with a fall of -36% from January to August caused by the reduction in domestic demand and the negative prospects for an increase in GDP, explained ECLAC.

He added that Mexico, the second recipient of foreign direct investment in the region, received 8% less compared to the first half of 2014. In Chile these flows decreased 10% and in Argentina 11.5%.

Central America was the only subregion where these investments increased, with El Salvador, Honduras and Panama leading the way.

With regard to foreign direct investment leaving Latin America, ECLAC reported a -7% drop from January to June of this year.