A. M. 
The latest Foreign Direct Investment (FDI) report published by the Economic Commission for Latin America and the Caribbean (ECLAC), highlights a notable increase in foreign investment in El Salvador during 2023. The country received a total of US$760 million in FDI, representing an increase of 345% compared to the US$171 million recorded in 2022. This significant growth has allowed El Salvador to contribute 0.4% of regional investments.
The report reveals that most of the investments in El Salvador went to the services sector, which received 87% of total investment. This sector experienced an impressive 621% increase compared to the previous year. The manufacturing sector received the remaining 13%, with an increase of 143% compared to 2022. These data reflect a diversification in investment destinations within the country, with a notable focus on services.
Despite this outstanding increase in El Salvador, the general trend in Latin America is one of declining foreign direct investment. Regionally, FDI decreased by 9.9% in 2023 compared to the previous year. This decline is especially marked in large economies in the region, such as Mexico, which experienced a 23% reduction, Brazil with a 14% drop, Argentina with a 59% decrease and Chile with a 19% decrease.
The decline in FDI in these countries is due to a number of factors, including global economic uncertainties, unstable domestic policies and changes in the business environment. These challenges have impacted investor confidence and led to a significant reduction in the flow of capital to these economies.
