Weekly Chart: FDI in Latin America and the Caribbean
Weekly Chart: FDI in Latin America and the Caribbean
A global protectionist tone means less foreign investment in emerging markets, but it’s not all bad news for the region.
It’s not hard to see that there’s been a major mood shift when it comes to globalization. From Brexit to Trump, the new protectionist tone spelled a 14 percent decline in 2016 foreign direct investment (FDI) flows to emerging markets as talk of bringing production home in developed economies grew. As an October 2017 report by the Economic Commission for Latin America and the Caribbean shows, the region was not immune. Still the FDI slowdown started well before the United Kingdom voted to leave the EU, thanks to a decline in commodity prices that began in 2010.
But there are plenty of bright spots in Latin America as well. Brazil saw more than a $4 billion-increase in FDI from 2015 to 2016, accounting for 47 percent of the region’s total foreign investments. Colombia, meanwhile, saw a 16 percent increase year on year.
Introduction by Carin Zissis.
