Executive summary

The decade ending in 2019 saw the highest ever foreign direct investment (FDI) inflows to Latin America and the Caribbean, which reached their peak in 2012. Since then, foreign investment inflows have declined steadily, bringing into focus, especially in South American countries, the relationship between FDI flows, the macroeconomic cycle and commodity price cycles in the region. In 2019, the region received US$ 160.721 billion in foreign direct investment, which was down 7.8% from 2018; FDI thus represented 3.2% of GDP, slightly less than the average of 3.4% for the last decade (see figure 1).

Sustainable Development Goals:

Decent Work and Economic Growth