What country in latin america has been the highest recipient of inward fdi in recent years?

FDI in Figures

Mexico is one of the emerging countries most open to foreign direct investment, the world's ninth largest FDI recipient. In 2020, the inflows to Mexico was relatively resilient compared to the rest of the region, as the country was already suffering a recession in 2019. According to UNCTAD's 2021 World Investment Report, FDI inflows fell to USD 29 billion in 2020 from USD 34 billion in the previous year (-15%). Nevertheless, 60 per cent of inflows were generated during the first quarter of the year, when reinvested earnings are usually recorded. The total stock of FDI is estimated at USD 597 billion in 2020. Overall, FDI inflows were affected by rising uncertainty over the government's economic agenda, its focus on fiscal austerity, the slump in fixed investment and the contraction of GDP (-8.2%). These factors were compounded by persistent concerns about the current administration's critical stance on public-private partnerships (PPPs) and the role of the private sector in key industries, together with the financial situation of the state-owned oil company Pemex and the massive assistance it receives from the government (valued at USD 3.5 billion). Besides, shifts in the five-year plan and in the policy of CFE, the state electricity supplier, discouraged private investment in public utilities and contributed to a 67% drop in FDI in electricity generation, transmission and distribution.
Investments mostly come from the United States, Spain, Canada and Germany. The sectors receiving significant foreign investment are manufacturing (especially the automobile industry), financial and insurance services, retail and wholesale trade, and communication. Foreign investments are mostly concentrated in towns neighbouring the U.S border (where many assembly factories are located), as well as in the capital. Thanks to its robust tourism industry, the Yucatan Peninsula also receives substantial foreign investment. FDI flows to the country fluctuate strongly depending on the arrival and departure of large international groups.

As a member of USMCA, OECD, G20, and the Pacific Alliance, Mexico is very well integrated into the world economic order, making it an attractive country for FDI. Additionally, Mexico enjoys a strategic location, a big domestic market, a wide variety of natural resources, a relatively well-qualified workforce and diversified economy. However, in recent years, Mexico's competitiveness has suffered from the rise of organised crime and lack of reforms in the energy sector and in tax regulations. Corruption and administrative inefficiency have also been major issues and the business climate continues to suffer from safety risks in the country. Mexico is ranked 60th out of 190 in the World Bank's last Doing Business ranking, which was published in 2020, losing six spots compared to the previous year. Among the biggest investments that occurred in recent years is the purchase of Mexican bank ABC Capital by Argentine fintech Ualá, in 2021. However, the value of the transaction was not disclosed.

Foreign Direct Investment201920202021
FDI Inward Flow (million USD)34,411 27,934 31,621
FDI Stock (million USD)567,782 545,612 578,792
Number of Greenfield Investments*641 304 376
Value of Greenfield Investments (million USD) 27,859 13,951 19,883

Source: UNCTAD, Latest available data.

Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.

FDI INFLOWS BY COUNTRY AND INDUSTRY

Main Investing Countries2020, in %
United States 39.1
Canada 14.5
Spain 13.7
Japan 4.2
Germany 3.5
Main Invested Sectors2020, in %
Manufacturing 40.6
Financial and insurance services 23.2
Transport 9.8
Wholesale and retail trade 7.7
Mining and quarrying 4.6
Communication 4.3

Source: Ministry of Economy (in Spanish) - Latest available data.

Form of Company Preferred By Foreign Investors The most common forms of creating a business company are the Limited Liability Stock Corporation (Sociedad Anonima, S. A.) and the Limited Liability Company (Sociedad de Responsabilidad Limitada S.R.L.).Form of Establishment Preferred By Foreign Investors Subsidiaries and assembling plants for the 'maquiladora' (assembly plant) industry.Main Foreign Companies IBM, Coca-Cola, Motorola, Walmart, Inditex Group, BBVA Bancomer, Santander Group, Procter & Gambleetc. Also, 500 of the largest Latin American enterprises have a presence in Mexico.Sources of Statistics General Direction of Foreign Investments

What country in latin america has been the highest recipient of inward fdi in recent years?

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Latest Update: December 2022

Which country receives the most FDI in Latin America?

In 2020, the Foreign Direct Investment in Brazil amounted to 44.66 billion U.S. dollars, while the FDI in Mexico added up to 31.37 billion U.S. dollars. Chile topped the top three with roughly 8.5 billion dollars worth of FDI. ... .

Which country has received the most foreign direct investment in recent years?

List of countries by received FDI.

Which country is the highest recipient of FDI?

This drop is not surprising given increasing inflation and interest rates, rising energy prices and Russia's full-scale invasion of Ukraine. The United States was the leading FDI recipient worldwide, followed by China and Brazil.

Which country received highest FDI in 2022?

Singapore is ranked one FDI provider to India. The small island nation has invested $15.9 billion in FY22 which is accounted for 27 per cent of India's total FDI received. USA is India's second biggest investor with FDI of $10.5 billion, with 18 per cent of total FDI.