By: Staff Writer
July 10, 2026
The United Nations Trade and Development (UNCTAD) in its World Investment Report, 2026 said that greenfield announcements in the Latin American and Caribbean region fell by one third from about $170 billion in 2024 to less than $120 billion in 2025.
The report also said: “. Project numbers also declined, reinforcing the slowdown, especially in manufacturing and logistics, even as some large projects in energy and mining continued to move forward. The decline was particularly pronounced in Mexico, where greenfield values fell from $44 billion to $24 billion, and in Argentina, where they fell from about $37 billion to only $1.4 billion.
“The sectoral composition of announced greenfield investment in Latin America and the Caribbean shifted towards services and selected infrastructure activities in 2025, while manufacturing weakened and extractives declined for the second consecutive year.”
The report also said: “Tourism and real estate continued to attract investment in the Caribbean, although these sectors remained sensitive to global economic conditions and external demand.”
The report continued: “Data for 2025 show a divergence between potential and realized investment. While FDI inflows to Mexico increased, greenfield project values declined, from about $44 billion to $24 billion, indicating that firms postponed or scaled back new capacity.
“A similar pattern was visible across several economies associated with nearshoring and regional supply chains. In Panama and the Dominican Republic, for example, investment continued to be supported by logistics, transport and other services activities linked to their roles as regional trade hubs.
“Successful nearshoring depends on identifying specific niches within production networks, strengthening domestic firm capabilities and investing in human capital and infrastructure. In Latin America, however, transport and energy infrastructure remain key bottlenecks. When these constraints are not lifted, investment decisions remain cautious.
Global investment is rising again. But it’s becoming more concentrated, more selective and less accessible to many developing countries.
The recovery remains fragile. Growth is concentrated in a small number of economies and in capital- and technology-intensive sectors.
Governments are responding with more selective policies. Incentives increasingly target clean energy, digital infrastructure, advanced manufacturing and critical minerals. Screening and conditions on foreign firms are also expanding.
Investment patterns are reshaping global production. Greenfield investment in strategic sectors is rising, while investment in manufacturing outside them is declining. The shift favours economies with strong infrastructure, skilled workers, supplier networks and access to major markets.
Most developing countries can’t match the subsidy programmes of major economies. They need realistic entry points, stronger foundations and regional cooperation to compete and increase investment’s development impact.