MercoPress. South Atlantic News Agency

FDI in Argentina falls 30%; in Brazil and Colombia soars 157% and 91%

Mining and hydrocarbons the main attraction for investors

Foreign direct investment, FDI, in Argentina fell 30% in the first six months of this year, while the whole of Latin America and the Caribbean received 54% more, the United Nations Economic Commission for Latin America said in a report on its website.

Foreign investment in Argentina fell to 2.4 billion dollars in the first half of 2011 from 3.5 billion dollars a year earlier, the Santiago-based commission said. Investment fell in 5 out of 18 countries in Latin America and the Caribbean, the report showed.

Investment fell 31% in Paraguay, 18% in Mexico, 4% in Uruguay and 14% in Chile.

Brazil received 157% more direct investment than in the first half of last year, with a total of 44.1 billion, while in Colombia it increased 91% to 7 billion, Cepal said.

“The increase in FDI inflows is due to the stability and economic growth in most of the countries and the high prices of raw materials, which continue to attract investment in mining and hydrocarbons, particularly in South America,” the report said.