The corona crisis will halve foreign direct investment in Latin America

The corona crisis will halve foreign direct investment in Latin America

Foreign direct investment in Latin America and the Caribbean will reach about half this year compared to 2019. This was stated in the latest report of the Economic Commission for Latin America and the Caribbean. This is due to problems associated with the new coronavirus pandemic. According to the commission, the region recorded foreign direct investment of USD 161 billion (EUR 133.43 billion) in 2019. Compared to 2018, this represents a decrease of 7.8%. This year, the decline will be significantly more pronounced. The Commission estimates that for the spread of the new coronavirus, foreign direct investment in the region should fall by 45% to 55%. The region of Latin America and the Caribbean will thus be among the regions most affected by the corona crisis. Last year, Brazil, Mexico, Chile, Colombia and Peru received the largest amounts of foreign direct investment. It was these countries that were subsequently hit the hardest by the new coronavirus pandemic.