Foreign Direct Investment in Latin America and the Caribbean 2017

44 Chapter I Economic Commission for Latin America and the Caribbean (ECLAC)
Figure I.14
Latin America and the Caribbean: cross-border capital inflows, 2005-2016
(Billions of dollars)
450
400
350
300
250
200
150
100
50
0
Other investment
inflows
Portfolio investment
inflows
Foreign direct investment
inflows
-50
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of official figures and estimates as of 15 June 2017.
Note: FDI data prior to 2010 are not directly comparable with those for 2010 and later. This is represented by a white line on the graph.
Secondly, it is important to consider the effect of FDI income on the balance-ofpayments
current account, which has declined steadily since 2006 reaching a negative
value equivalent to -3.3% of GDP in 2015, largely as a result of the deteriorating goods
balance. In 2016, however, the deficit narrowed, reaching the equivalent of -1.9% of
GDP, thanks to the sharp fall in the goods balance deficit caused by the economic
downturn, which led to a contraction in imports that outweighed the drop in exports.
The services balance deficit also narrowed, though to a lesser extent, and current
transfers increased (see figure I.15).
Figure I.15
Latin America and the Caribbean: balance-of-payments current account by component, 2010-2016
(Percentages of GDP)
3
2
1
0
-1
-2
-3
-4
-5
1.2 1.0
1.0
1.4
1.0 1.1 1.3
-1.0 -1.2 -1.3
-0.9
-1.3
-1.3
-2.0 -2.0
-1.1
-2.3
-3.1
-2.8
- -3.1 -2.5
-3.0 -2.7 -2.5
-3.3
-2.6
-2.5
2010 2011 2012 2013 2014 2015 2016
-1.9
Current transfers
balance
Goods balance
Services balance
Income balance
Current account
balance
Source: Economic Commission for Latin America and the Caribbean (ECLAC), Economic Survey of Latin America and the Caribbean, 2017, briefing paper, Santiago.