Virtual seminar “Foreign Direct Investment in Latin America and the Caribbean 2024: Mexico in focus

In a context of persistent geopolitical conflicts and high interest rates, 2023 saw a decline in global foreign direct investment (FDI) flows for the second consecutive year. This dynamic had an impact on Latin America and the Caribbean and in 2023 it was not possible to maintain the high levels of FDI inflows registered in 2022. The region received 184,304 million dollars, a value 9.9% lower than the previous year.

At the subregional level, the scenario was uneven: in South America there was a decrease (-10.3%), while in Central America and the Caribbean more FDI was received than in 2022 (12% and 28%, respectively). For their part, in Brazil and Mexico, which are the main recipients of FDI in the region, inflows decreased compared to 2022 (-14% and -23%, respectively). Regarding the origin of investments, it is observed that the United States and the European Union continue to be the main investors in the region.

In general, with some exceptions, FDI in the region has been concentrated in sectors and countries that offer static comparative advantages, such as natural resources or relatively cheap labor. This reality presents challenges and opportunities for policies to attract investments and productive development. When the investment attraction policy is integrated and coordinated with a sustainable productive development strategy, it is possible to promote dynamic comparative advantages that allow transnational companies to be attracted to sectors with greater potential for growth and capacity development, and, in addition, the conditions for the absorption of the benefits of these investments through positive externalities and productive chains.

Given this context, the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) organizes the virtual seminar “Foreign Direct Investment in Latin America and the Caribbean 2024: Mexico in focus”, which is part of a series of events to discuss and dialogue about the challenges and opportunities of FDI both at the national and subnational levels. On this occasion, the results of the annual report “Foreign Direct Investment in Latin America and the Caribbean 2024” will be presented, Mexico’s position in this context will be highlighted, and policy definitions that promote the positive impact of FDI in Latin America and the Caribbean will be debated. the country.