Foreign Direct Investment in Latin America and the Caribbean 2017

Foreign Direct Investment in Latin America and the Caribbean • 2017
Chapter I
37
in FDI in manufacturing, mainly in Brazil and Mexico, is linked to the development of
the automobile industry and technological disruption in the sector (which is analysed
in chapters II and III of this document). Meanwhile, in Colombia and in Central America
and the Dominican Republic, services now account for the lion’s share of FDI, standing
at 69% and 65%, respectively.
47
1
16
36
Brazil
46
0,4
16
38
37
9
54
Mexico
34
5
61
Figure I.10
Latin America (selected
subregions and
countries): a distribution
of FDI by sector,
2010-2016
(Percentages)
2010-2015
2016
2010-2015
2016
Colombia
Central America and Dominican Republic
38
14
48
69
17
14
59
2
12
27
65
4
8
23
2010-2015
2016
2010-2015
2016
Services
Manufactures
Natural resources
Other sectors
Source: Economic Commission for Latin America and the Caribbean, on the basis of official figures and estimates as of 15 June 2017.
a
Figures for Central America do not include Costa Rica or Panama, because data for 2016 are not available.
The services category covers a range of economic activities and the weight of FDI
in each subsector varies from one country to another and from one year to the next, as
transactions often require large investments in infrastructure or electricity, for example.
In spite of this, four areas stand out as the largest recipients: financial services; trade;
electricity, gas and water services; and telecommunications.
Given the limitations in coverage and detail of national FDI statistics disaggregated
by economic activity, the present analysis is supplemented with information compiled
by the Financial Times publication, fDi Markets, (see figure I.11). 7 The sectoral make-up
of announced investment projects changed following the end of the commodity boom,
when the number of projects announced in extractive industries began falling steadily
and was offset by the increase in investments announced in other sectors, mainly
renewable energy, telecommunications and the automobile industry, in which the region
received 17%, 21% and 20% of world overall investment, respectively.
7
This base includes the figures announced for greenfield investments, which are not strictly comparable with FDI inflow statistics,
as they refer to investment plans which may materialize over a long period of time, including several years after the announcement,
and for which the final amount invested may differ from what had been previously announced. Meanwhile, FDI statistics correspond
to foreign exchange inflows used to finance transnational companies’ activities over a period of one year in a recipient economy.
Announced project information reveals the medium- and long-term strategies of transnational firms broken down by sector.