FDI in Latin America, Caribbean hits record 126.3 billion dollars for 2007

by Dave

Earth Times Finance General

Foreign direct investment (FDI) in Latin America and the Caribbean reached a record 126.3 billion US dollars in 2007, the United Nations Conference on Trade and Development (UNCTAD) said Wednesday in the Chilean capital Santiago. UNCTAD expected the figure to continue to rise in 2008.

Brazil, Mexico, Chile and Argentina
received a combined 67 per cent of the inflow, with Brazil alone claiming three out of every 10 dollars that arrived in the region.

In total, South America obtained 72 billion dollars in FDI in 2007 – a figure that is larger than the combined gross domestic products of Bolivia, Ecuador and Uruguay.

Central America and the Caribbean, aside from tax havens, saw an increase in FDI received to 34 billion dollars, but the UNCTAD report warned that this might be at risk in the face of the ongoing credit crisis in the United States.

Brazil alone received 28 per cent of FDI in the region, followed by Mexico at 21 per cent, Chile at 11 per cent, the Cayman Islands at 9 per cent, Colombia at 7 per cent and Argentina at 4 per cent.

UNCTAD said that the rise in investment was tied to the high prices of commodities.