ECLAC reports foreign investment reached 3% in 2011

The direct foreign investment (DFI) in Argentina reached to 7.243 billion dollars in 2011, 3 percent higher than the previous year, according to the Economic Commission for Latin America and the Caribbean (ECLAC).

The foreign capital income in the country strongly exceeded the average registered from 2000-2005, that totalled 4.296 billion dollars, and also the performance reported in 2006, when it reached to 5.537 billion, and in 2007 (6.473 billion dollars).

Despite last year’s recovery, the DFI in Argentina could not reach the record of 2008, before the global crisis, when it totalled 9.726 billion dollars, according to the document released by the organization in Santiago de Chile.

The report details that most of the foreign investment (55 percent) in the country during 2011 belonged from new capital contribution, 31 percent to the re-investment of profits and the 14 percent left to loans between companies.

The main country that received investments in 2011 was Brazil, with 66.660 billion dollars, followed by Mexico with 19.440 billion, Chile with 17.299 billions and Colombia, 13.234 billions.

Peru received 7.659 billion dollars, Argentina 7.243 billions, Venezuela 5.302 billion dollars and Uruguay 2.528 billion dollars. Brazil, Chile, Colombia, Peru and Uruguay have reached historical records this year.

In Central America, the DFI incomes increased 36 percent against 2010 and the countries that were highlighted were Panama (2.790 billion dollars), Costa Rica (2.104 billions) and Honduras (1.014 billion dollars). The incomes in the Caribbean rose 20 percent compared to the previous year, headed by the Dominican Republic, with 2.371 billion dollars.

Meanwhile, the US was the main investor in the region totalling at 18 percent, followed by Spain (14 percent), Latin America and Caribbean (9 percent) and Japan (8 percent). According to the report, the European Union is historically the main investor in the region. During the last decade the bloc invested 30 billion dollars average per year in Latin America and Caribbean. The investments have been mainly directed to South America, specially banking and electric power sector.