BID Confirms Investment Spike in Latin America, the Caribbean

Direct foreign investment in Latin America and the Caribbean will grow steadily this year, a token of increasing confident on the part of investors and developers in the region, a report issued by the Inter American Development Bank (BID is the Spanish acronym) states.

“In terms of direct foreign investment in the region, there are clear indications that cash inflows toward Latin America and the Caribbean will be back on the rise in 2004,” the report indicates.

Even though the document does not reveal any exact figures, it does assure a hike in investment volumes stemming from a rebounding world economy.

The International Finance Institute (IFI) informed last week in Washington that outflows of private cash to emerging markets will likely climb from $226 billion this year to $229 billion in 2005.

Ziga Vodusek, the economist who signed the BID report, was quoted as saying in the Argentinean press that “the region’s return to growth and macroeconomic stability reflects tighter inflation control –under six percent this year- and balanced current accounts, two vital signs to lure investors back.”