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Havana, Aug 11 - A report by the Economic Commission for Latin America and the Caribbean –ECLAC—points at a freefall of direct foreign investment in the Latin American and Caribbean region last year marked by a sanitary, economic and social crisis caused by the COVID-19 pandemic.

According to ECLAC, direct foreign investment in this part of the world translated into little over 100 billion dollars last year, that’s 34,7 less than what was reported in 2019, and 51 percent below the historic record of 2012, while it’s the lowest figure since 2010.

Meanwhile, at the world indicator fell by 35 percent if compared to last year to stand at the lowest level since 2005, the report reads.

Latin America and the Caribbean are witnessing a shrinking trend of their direct foreign investment since 2013, which has evidenced the link between such investment and price cycles of raw materials, particularly in South America.

The major impact was evidenced in the sector of natural resources, while foreign companies were less interested in investing in existing enterprises or in announcing new investment projects.

The 2021 scenario continues to be complex, reads the report and notes that according to the UN Conference on Trade and Development, this year may expect an increase between 10 and 15 percent.

ECLAC stresses the need to channel Direct Foreign Investment into those areas generating productivity, innovation and technology given the nature and scope of the current crisis. (ACN)



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