Foreign investment grows in Latin America but decreases in Ecuador
Foreign direct investment in Latin America and the Caribbean in 2010 increased 40% with a amount of USD 113 000 million. This made the region the highest growth area in the world for foreign capital inflows, reported yesterday by the Economic Commission for Latin America (ECLAC).
agency Executive Secretary, Alicia Bárcena, noted that among the factors that made the investment growth in 2010 include better performance of the developed economies and the dynamism of some emerging economies that drove some sectors by increases in demand.
The main receiving countries were Brazil and Mexico with 58% of the total amount being South America, the area attracted more investment .
United States remained the lead investor in the region, followed by the Netherlands, China, Canada and Spain.
The ECLAC report highlighted in particular the emergence of China. In 2010, Chinese companies invested about USD 15 000 million in Latin American countries through mergers and acquisitions.
Over 90% of confirmed Chinese investment in Latin America have led to the extraction of natural resources or commodities.
this sector in the region remains one of the major recipients of investment along the manufacturing and services.
the list of 32 countries received more capital, Ecuador ranked 21, with an investment of USD 164 million, 49% compared to 2009 .
The region was located just above Venezuela, Haiti, El Salvador and other Caribbean islands.
This contrasts with what they receive from neighboring countries like Peru (USD 7 328 million) and Colombia (USD 6 760 million), equivalent to 40 times more resources invested. Keep in mind that Ecuador is the dollar currency, therefore any injection of new resources will help strengthen the system of dollarization and have a positive impact in generating new jobs.
The economic analyst said Fabian Carrillo that this phenomenon is given by the difference in development patterns between Ecuador and its neighbors. While in Ecuador the main driver of investment is state in Colombia and Peru promotes private sector participation .
This is compounded by an unfavorable environment for foreign investment by the lack of clear rules that will endure.
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