Foreign direct investment (FDI) in Latin America will fall by up to 55% in 2020 due to the pandemic, the United Nations’ regional economic commission reported on Wednesday, December 2.
The figures represent the world’s “most pronounced” regional decline, the Economic Commission for Latin America and the Caribbean (ECLAC) said in a report released at its headquarters in the Chilean capital Santiago.
“The drop for 2020 will be between 45% and 55%. In the context that global FDI is going to fall by 40%, we are falling more than the world, that’s what matters,” ECLAC Executive Secretary Alicia Barcena told reporters in Santiago.
“The fall is very big and important, and not only because of the pandemic, which plays a role without a doubt, but business strategies are changing,” she said.
Regional investment reached $160.7 billion in 2019, 7.8% less than in 2018, a negative trend “that will become more acute in 2020” – mainly as a result of the pandemic, Barcena told a news conference to present the report.
The fall of foreign investment has been a constant since 2012, when the region reached its historical maximum based on a boom in raw materials, she said.
Among the worst performing countries are Peru, where FDI fell by 72% in the 3rd quarter, Colombia by 50%, and Brazil by 45%.
Only Mexico has held up relatively well, with a drop of 6% in the 3rd quarter.
Latin America and the Caribbean is the region with most cases of COVID-19, with some 12.5 million people affected, earlier this week surpassing 400,000 deaths from the disease. – Rappler.com
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