Foreign Direct Investment in Latin America and the Caribbean 2004

image of Foreign Direct Investment in Latin America and the Caribbean 2004

This publication sets out and analyses the main foreign direct investment (FDI) trends in the countries of Latin America and the Caribbean in 2004. For the first time since 1999, foreign direct investment (FDI) inflows into Latin America and the Caribbean grew in 2004. These inflows topped US$ 54 billion, far exceeding the US$ 37 billion registered in 2003 and representing a 46% increase. This is welcome news for the region, as it may portend the beginning of a new and sustained investment boom.



Brazil: Foreign direct investment and corporate strategies

In the past, foreign direct investment (FDI) was attracted to Brazil, and especially to its manufacturing sector, by the potential of its domestic market. The external debt crisis and the economic instability of the 1980s discouraged these market-seeking foreign investors, but more recently Brazil has regained its status as the largest recipient of foreign capital in Latin America and the Caribbean. The privatization programme has been the most fundamental factor in attracting new international operators to the public utilities and infrastructure segments, which account for a large part of recent FDI. Manufacturing has also received fresh inflows of FDI, thanks to the renewed potential of the domestic market and improved macroeconomic conditions in the 1990s. Even so, the quality and volume of investment in Brazil has been rather modest in relation to the size of the economy and the government’s expectations.


This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error