Investment in Latin America, the Caribbean Soared 44 Percent in 2004

Foreign investment in Latin America and the Caribbean increased a whopping 44 percent in 2004, with Brazil and Mexico leading the pack, according to the latest release from the United Nations Conference on Trade and Development, UNCTAD.

“Foreign direct investments are crucial to address poverty and create economic opportunities, particularly jobs”, said George Kell, CEO of the UN Global Compact Program.

Latin America and the Caribbean, after four consecutive years of foreign investment descent, in 2004 managed to attract $68 billion. Brazil, with $18 billion and Mexico $17 billion, were the main recipients, most of it directed to the manufacturing sector as opposed to other years when services was the major attraction.

The two leading economies of the hemisphere, together with Chile and Argentina, absorbed two thirds of all the direct foreign investment in 2004.

Venezuela, Bolivia and Ecuador suffered the most, given the introduction of changes in legislation regarding mineral resources which shooed foreign direct investment away. The region´s GDP will total $2.48 trillion, exports $555 billion and foreign debt $780 billion in 2005, a 1.3 percent spike from 2004.