Foreign direct investment inflow to Latam rises 8% in six months to 94.3bn dollars
Inflows of foreign direct investment (FDI) to 17 of Latinamerica’s countries rose 8% in the first six months of 2012, compared to the same period a year ago, reaching 94.331 billion dollars, according to figures released on Tuesday by the Economic Commission for Latin America and the Caribbean, ECLAC.
At the same time, investment by Latin American enterprises abroad (or trans-Latins) surged by 129% in the first half of the year.
The rise in FDI can be tracked to economic buoyancy and stability in most countries and high commodity prices, which continue to encourage investments in mining and hydrocarbons, particularly in South America.
However the overview of FDI inflows to the region is uneven with falls registered in several countries, but the strong climb in Chile, Argentina, Dominican Republic, Peru and Colombia give an overall positive result. This combines with the relatively stable flows to Brazil (which dipped slightly by 2%). Latinamerica’s largest economy accounts for 46% of FDI received by the region in 2012 and make it the main recipient in Latin America and the Caribbean.
Chile is also consolidating its position as a major magnet for FDI: in the first half of the year it was the second largest recipient in the region.
In the first six months of the year, Mexico received 19% less FDI than in the previous year. The trend is expected to reverse in the second half of the year, with the inclusion of the 20.1 billion dollars that the Belgian brewery AmBev paid for the Grupo Modelo. In the first half of the year, the same company bought the Dominican Republic's main brewery, Cervecería Nacional Dominicana (CDN), for 1.0 billion dollars. This transaction explains the surge in investment inflows into the Dominican Republic (the Caribbean's main recipient).
In Central America, Panama and Costa Rica received similar flows to last year. Guatemala posted an increase of 47%, while El Salvador and Nicaragua saw inflows fall by 60% and 20%, respectively (in relation to the first half of 2011, when both countries' inflows were exceptionally high).
According to ECLAC by the end of 2012 the region's FDI inflows as a whole will continue to follow these trends which confirm May's estimates of a moderate increase.
The significant rise in trans-Latin investments, which actually dropped in 2011, was mainly due to Mexican and Chilean enterprises, which in the first six months invested 11.5bn and 10.3bn dollars abroad, respectively (similar to the amounts invested during -the whole of 2011).
Brazilian trans-Latins continue the trend seen in 2011, with significant transfers from subsidiaries abroad to parent companies, which results in a negative balance for FDI abroad.
The information for 2012 confirms that the process of business internationalization remains concentrated in a small number of countries and sectors, which results in highly volatile aggregate flows over time. Despite this, since the middle of the previous decade there has been a process of increased activities abroad from trans-Latin corporations.
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The significant rise in trans-Latin investments, which actually dropped in 2011, was mainly due to Mexican and Chilean enterprises, which in the first six months invested 11.5bn and 10.3bn dollars abroad, respectively (similar to the amounts invested during -the whole of 2011).“
We are such a small country in the region, with just 16 million in population, 2,5% of the whole Latinamerican Population. And we are still a counterweight to the ”risen big titans” in the region. Brasil with it's 195 million and Mexico with 115 million. Nevertheless we fight for economic domination on the continent face-to-face with them.
Conclusion: We kick ass or they suck really baaaaad.
Argentina? According to what some trolls say on this site, I thought that Argentina was a pariah.
Here is the “missing infor” in the above article....:
Foreign direct investment inflow variation 2011 - 2012 (1st half)
Argentina + 42%
Bolivia + 53%
Brazil -2%
Chile + 80%
Colombia + 18%
Mexico -19%
Peru + 31%
Uruguay - 4%
Venezuela - 20%
www.cepal.org/prensa/noticias/comunicados/6/48226/tabla_ied_2012_enx.pdf
That were the turnips saying???
As a part-time turnip, I say, we might be mid table in the world cup qualifiers, but we're still top of the table in somethings.
Foreign Direct Investment Inflows,
$million
2010 2011 Full year change %
Brasil 48506 66660 37
Mexico 20709 19554 -6
Chile 15373 17299 12
Colombia 6899 13234 92
Peru 8455 8233 -3
Argentina 7055 7243 3
Venezuela 1209 5302 339
Uruguay 2289 2191 -4
Bolivia 643 859 34
unctad.org/en/PublicationsLibrary/wir2012_embargoed_en.pdf … Annex table 1.1
Year on year variation is massive, even for a 'stable' economy like Brasil's, and a half-year figure is even more dangerous.
but to cite the inflow **Variation** is disengenuous
eg 1 unit in 2010 -> 2 units in 2011 = 100% increase.
1000000 units in 2010-> 2000000 in 2011 = 100% increase.
but the mass flows are somewhat different :-)
And this is only FDI Inflows .... Outflows also condition the picture a bit.
Complex, I think.
Yes, that is a good point. You really need to look at 5 year averages to get a good picture.
Let us take three South-American Countries vith similar number of inhabitants…
Colombia, ~43 million people. The ”Super-Darling” of the USA, the FMI, the WB, the Credit Rating Agencies, the WSJ, the FT, the Economist, Mercopress :-) etc… etc.. etc… during the last many years......
They got: 7,798 millions of dollars during the 1st half of 2012 in Foreign Direct Investment
Perú, ~32 million people. The ”New-Darling” of the USA, the FMI, the WB, the Credit Rating Agencies, the WSJ, the FT, the Economist, Mercopress :-) etc… etc.. etc…
They got : 5,440 millions of dollars during the 1st half of 2012 in Foreign Direct Investment
Argentina, ~40 million people. An ” Economic-Pariah State”, an ”Unsafe Harbour for Investments” according to the Credit Rating Agencies, the WSJ, the FT, the Economist, Mercopress :-) etc… etc.. etc…
(+A State that just had had the Chuzpah of ”Nationalize” the assets of one big European Oil Company)
We got: 5,388 millions of dollars during the 1st half of 2012 in Foreign Direct Investment
Odd…… huhhhh?
Do you have any numbers on where that $5,388 million comes from?
The article mentiones Chile and Mexico investing ca $10bn each in the region. I wonder how much of that is in Arg.
I couldn't find any numbers ... and seeing as you seem to have all the stats at your finger tips today...
That is what I was thinking, but I can find any numbers to back it up. Think says it is “odd” and I agree. The logical explanation is that much of FDI inflows to Arg are coming from Chile, Brazil, Mexico, i.e. countries that know the terrain and Argentina wouldn't have the desire or “Chuzpah” to mess with.
Worth noting that when Repsol was nationalised, CFK didn't touch the Chilean owned share.
Nobody, even CFK, dare expropriate Chinese assets in Argentina. So Chinese 'direct investment' is risk-free.
Perhaps they are buying in excess of $5.3trillion of prime land, largely 'below the counter', to safeguard China's future food needs.
Argentina will be (is being) sold off to the Chinese at 'vulture prices' because the Argentinan establishment needs the foreign income to stay in power.
Do you know that or are you just speculating?
Has anyone found numbers of where Arg FDI inflows are coming from. I am inclined to agree with Manrod that it is coming from LatAm, but I can't find any info on the subject.
only quoting from previous Mercopress articles.
'Limit placed on the % of land able to be sold to foreigners'...... Good in itself, but the % of *all* land is a high % of high grade famland.
There's bound to be lots of small purchases of 'small' farms (as in Uruguay) by farmers from the UK and elsewhere, but the mega-purchases of huge swathes of prime land are probably by overseas pension funds, big agrocompanies like Monsanto, and of course, public/private mega-companies starting with the prefix 'Sino ...'
Surely there is a national register of land-purchases and ownerships, or at least state registers, .... or at least ....
And a register will usually record the name of an Argentinian national who is on the company books specifically to get round the land sale regulations, so the real owner may never be revealed.
How they square this with the FDI Inflow statistical requirements is a thing only known by INDEC.
The “old insufferable” with his conspiration theories and his social acceptable Sinophobia .......
Told you before...................... try some Wabi-Sabi............... It helps.
Anyone?
Just repeating recent themes in the South American papers/TV news/agencies.
You don't seem to be refuting any of my points, however.
Have a look at my points in #16; some of these points might be wrong.
Makes you smile?
Do you know what bearer bonds are? Did the contract of the loan say the bonds can not be sold?
No
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