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Foreign Direct Investment in Latin America and the Caribbean 2003

image of Foreign Direct Investment in Latin America and the Caribbean 2003

This publication sets out and analyses the main foreign direct investment (FDI) trends in the countries of Latin America and the Caribbean. In 2003, flows of foreign direct investment (FDI) to Latin America and the Caribbean continued to shrink for the fourth year running. With this latest decline, Latin America and the Caribbean turned in the worst performance of any world region. This situation was exacerbated by the steady increase in profit remittances and in outflows of other FDI-related resources, which has diminished its impact on the balance of payments.

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Regional overview

Total foreign direct investment (FDI) in Latin America and the Caribbean approached US$ 36.5 billion in 2003, which represented a 19% retreat from the previous year’s figure –the steepest fall recorded in any of the world regions (UNCTAD, 2004). Flows of FDI to the region have been trending downward since attaining an all-time high in 1999 but, despite this new reduction, transnational corporations (TNCs) still maintain a forceful regional presence. This situation can be characterized as the transnationalization of Latin American economic assets, as foreign firms expand their presence in the various activities of the local economies.

English

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