MercoPress. South Atlantic News Agency

Uruguay leads the region in direct foreign investment percentage increase: 35.4%

Brazil remains the country which most funds attracted, according to Cepal

Uruguay is the country in Latin America and the Caribbean which experienced the highest percentage increase in direct foreign investment during the first half of the year, according to the latest report from the United Nations Economic Commission for Latin America and the Caribbean, Cepal.

Foreign direct investment in the eleven economies of the region increased 16.4% during the first half of 2010 compared to the same period a year ago. In dollars the increase was over 7 billion, having jumped from 43.24 billion in 2009 to 50.34 billion in 2010, points out the Cepal report.

Uruguay had the highest DFI percentage increase, 35.4% in the region compared to the same first half of 2009. DFI expanded from 579 million to 784 million USD. Uruguay is followed by Chile with a DFI increase of 29.3%; Mexico, 26%; Panama, 26%; Peru, 22.9%; Costa Rica, 17%; Brazil, 8% and Argentina, 7.8%.

The DFI increase can be explained because of the stability and economic growth shown by the majority of countries in the region. In South America, the strong prices for commodities have continued to stimulate investments in mining and the hydrocarbons industries and to this must be added the recovery of world trade and improved prospects of international financial markets, according to the Cepal report.

However Dominican Republic and Colombia have seen DFI drop 39.9% and 18.4% respectively in the first half of the year while Venezuela is the only country with negative DFI, although less that a year ago, it added up to 109 million US dollars.

Overall these numbers are indicating that DFI will experience a moderate expansion in the twelve months of 2010, still short of the records from 2007 and 2008, points out the report.

During the first half of 2010, Brazil continued as the main receptor of DFI in the region totalling 17.2 billion USD. Mexico was second with 12.3 billion USD. Other countries: Chile, 8 billion; Colombia, 4.1 billion; Peru, 3.45 billion; Argentina, 2.2 billion; Panama, 1.15 billion; Costa Rica, 742 million and Dominica Republic, 650 million.