MercoPress. South Atlantic News Agency

Latinamerica attracts more private investment

Foreign investment in Latinamerica should grow a robust 47% during 2004 because of a better world business atmosphere and particularly the recovery of the Brazilian economy, according to a group of private financial institutions.

The Washington based International Institute of Finance, IFF, which includes banks, insurance companies and other financial related organizations, estimates the net influx of private foreign investment to Latinamerica in 39 billion US dollars compared to the 26 billion US dollars of 2003.

The IFF report indicates that after three years of week economic performance Latinamerica should expand 3,4% in 2004 mainly because of the recovery of the Brazilian economy and a positive growth in all countries of the region.

IIF also states that a favourable world economic scenario means Latinamerica participation in the share of private foreign investment heading for emerging markets, should improve. The region's share could reach 20%, a six point advance over 2003.

During 2003 Latinamerica expanded 1%, the less dynamic of all emerging markets, but with the expected 2004 recovery it should manage to overtake Africa/Middle East, but will still be far behind the emerging Europe and Asia/Pacific region.