Caribbean360: Region records strongest FDI growth

Region records strongest FDI growth
================================================================================
Chris Hoyos on 05/05/2011 10:56:00
 
MEXICO CITY, Mexico, Thursday May 5, 2011 – Latin America and the Caribbean
was the region with the strongest percentage increases as a recipient and source
of Foreign Direct Investment (FDI) last year, according to a report presented by
the Economic Commission for Latin America and the Caribbean (ECLAC).
Last year, the region's FDI inflows were 40% higher than in 2009, representing
112.634 billion dollars, while outgoing FDI almost quadrupled in the same period
to reach a historic high of 43.108 billion dollars, which highlights the
buoyancy of transnational Latin American and Caribbean enterprises, known as
trans-Latins.
For 2011, FDI flows to Latin America and the Caribbean are expected to maintain
this trend and increase by between 15% and 25%, which could take them to
unprecedented high levels, according to the projections of the report launched
by the Executive Secretary of ECLAC, Alicia Bárcena, and the Mexican Minister
of Finance and Public Credit, Ernesto Cordero.
"The figures we are presenting today point to the growing integration of Latin
American and the Caribbean in the process of economic globalization. The
region's countries not only remain attractive to foreign investors, but they are
also increasingly daring to conquer other markets by means of trans-Latins",
said Bárcena.
Nevertheless, the senior official did emphasize that "in order to improve the
capacity to absorb the benefits of such investment, we are stressing the need to
implement productive development policies focused on innovation and on the
strengthening of local capacities to promote the creation of quality employment.
FDI must help the region to grow with equality".
According to the report, ‘Foreign Direct Investment in Latin America and the
Caribbean 2010’, Chinese companies invested almost US$15 billion in Latin
American and Caribbean countries, fundamentally in the form of mergers and
acquisitions.
“Over 90% of confirmed Chinese investment in Latin America has targeted the
extraction of natural resources,” it said. “In the medium term, this
country's transnational enterprises are expected to continue to be active in the
region and diversify into infrastructure and manufacturing sectors.”
In Mexico, Central America and the Caribbean, investment continues to target
mainly manufactures (54%) and services (41%).
The share of Latin America and the Caribbean as a recipient of investment with a
high technology content remains small compared with other regions, although
there has been an increase in the number of FDI projects in medium to high
technology sectors and those associated with research and development.
Click here to receive free news bulletins via email from Caribbean360. (View
sample)