By: Staff Writer
June 20, 2025
The United Nations Trade and Development (UNTAD) in its World Investment Report, 2025 revealed that Latin America and the Caribbean (LAC) experienced a 12 per cent decline in foreign direct investment for 2024.
The report also said: “The decline was most pronounced in South America, where FDI dropped by 18 per cent to $111 billion.
“Although inflows in Brazil were 8 per cent lower, the country remained the top recipient in the region by value at $59 billion, supported by continued investment in renewable energy.
“Guyana and Peru posted gains, with FDI inflows rising almost 20 per cent in Guyana (to $8.6 billion) and almost doubling in Peru (to $5.9 billion), largely reflecting interest in offshore oil development and mining, respectively.”
The report also said: “In Central America, FDI rose by 4 per cent to $49 billion, led by modest gains in Mexico, where inflows reached $37 billion (+1 per cent), driven by manufacturing and logistics.
“Panama and Nicaragua also recorded substantial growth. The Caribbean saw a 21 per cent increase in FDI, reaching $3.9 billion, supported by stable inflows into the Dominican Republic.”
The report continued: “Greenfield project announcements in Latin America and the Caribbean increased in both value and volume, with project numbers up 2 per cent and projected capital expenditures rising 19 per cent.
“The largest year-to-year increases in project value were in coke and refined petroleum projects (to $47 billion) and digital economy (to $18 billion), while project values for extractive industries and metal products dropped by $20 billion and $8 billion, respectively, compared with 2023.
“In South America, investment value grew by 17 per cent to $113 billion, driven largely by Brazil, which recorded a 33 per cent increase to $50 billion.”
The report added: “Looking at longer-term sectoral trends in Latin America and the Caribbean – comparing the most recent five-year period of greenfield project activity with the previous one – reveals that clean energy, critical minerals, digital technology and automotive innovation have emerged as the principal drivers of investment in the region.”
“The relative resilience of developing regions reflects ongoing investor interest in market-seeking and resource-based investment, and the growing role of South–South capital flows.”