March 1, 2006
Latin America is losing FDI to other markets.To achieve long-term sustained growth, Latin America needs to attract investments of a permanent nature foreign direct investment (FDI). On this measure, the region doesn't stack up very well against its developing market peers.
The Institute of International Finance (IIF), a Washington-based lobbying group for the world's largest banks, estimates that net FDI last year into Latin America's nine largest economies was $40.9 billion, down 8.5% from the 2004 level. With tepid projected economic expansion of 4% this year, the IIF forecasts that FDI to Latin America will come in almost flat at $41 billion, bringing its three-year exp
Foreign direct investment is surging around the world, but flows into Latin America fail to impress. Regional leaders need to spur economic growth to bridge the gap.