In 2020 Latin America lost 56,000 million dollars
The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) assured that foreign investment in the region fell by 34.7 %, generating these losses
Foreign direct investment from Latin America and the Caribbean fell by 34.7 %, representing a loss of 56,000 million dollars and the lowest level in a decade, according to a new report by the Economic Commission for Latin America and the Caribbean United Nations (ECLAC).
Specifically, investment in the Latin American region was 105,480 million dollars during 2020, which is equivalent to 2.5 % of the Gross Domestic Product (GDP). By 2021, Cepal estimates this will grow between 10% and 15 % globally. In Latin America, the projection ranges from a 5 % decline to a 5 % advance.
By region, Central America accounted for the bulk of investment losses, with a drop of 89.4%, while in the Caribbean the contraction was 25.5%.
For the executive secretary of Cepal, Alicia Bárcena, the data represents a “big drop”, a trend that had already been decreasing since 2013.
“Foreign direct investment made relevant contributions in Latin America and the Caribbean, but there are no elements that allow us to affirm that in the last decade it has contributed to significant changes in the productive structure of the region or that it has served as a catalyst for the transformation of the model of productive development”, assured Bárcena.
In this context, the executive secretary is committed to a multilateral strategic approach to position the interests of the region and that investment flows contribute to sustainable development.
K. Tovar
Source: Xinhua
