Latin America and the Caribbean received record inflows of foreign direct investment last year, a United Nations report showed.
The UN Economic Commission for Latin America and the Caribbean (ECLAC) report found that foreign direct investment, or income from asset purchases, rose 55.2% from 2021 to $224.58 billion last year, the highest level ever recorded.
“FDI flows to the region have not exceeded $200 billion since 2013, so the recovery in 2022 represents a major investment milestone over the past decade,” ECLAC said in the report.
“Cross-border investments in 2022 were largely focused on hydrocarbon, and manufacturing sectors, helping to increase the contribution of foreign direct investment to the region’s GDP to 4.0%,” the ECLAC report added.
The number of mergers and acquisitions increased 7%, but the value of deals rose 57% to $30.15 billion over the year.
Brazil, the largest economy in Latin America, accounted for the lion’s share of investments with 41%, while Mexico, the second largest economy in the region, had 17%.
