Investments increase in Latin America but not in Ecuador

Foreign investments in the region

A record amount of foreign direct investment (FDI) was registered in Latin America and the Caribbean in 2012. However, as the region received $ 175,584 billion, up to 5% from the year before, Ecuador only gained 580 million, 5% less compared to 2011, according to information released by the Central Bank of Ecuador (BCE).

The Economic Commission for Latin America and the Caribbean (ECLAC) showed the figures that highlighted the upturn of the economic growth in the region.

“The economic crisis and uncertainty in developed economies move investments into emerging markets. Local contexts in Latin America are favorable and attractive to global investors. Natural resources go through a long cycle of increased prices, in particular metals, while the intern markets of the countries of the region have maintained their growth and provide business opportunities for the development of services (telecommunications, trade and financial services),” this was pointed out by the document of the entity.

Currently, Brazil remains as the largest recipient of the FDI, despite the slight decrease of 2% registered last year. While there was some significant increases in Peru, Chile and Colombia (see graphic).

Moreover, Mexico experienced a serious decline, reflected in the output of their stock of 25% of the subsidiary of Banco Santander of Spain for $ 4,100 million. While Ecuador, Venezuela and Nicaragua also experienced a decrease in investments.

Experts like economist Juan Vinueza, indicated that it is normal to have low FDI volumes in Ecuador since it’s a small country. However, it is alarming that while other countries increase their capturing of resources, Ecuador’s decreases.