
Foreign direct investment (FDI) in Latin America and the Caribbean grew by 1.7% in 2025, reaching US$194.233 billion, according to the annual report of the Economic Commission for Latin America and the Caribbean (ECLAC). The organization warned that the growth was moderate due to an international scenario marked by uncertainty, geopolitical and technological tensions, as well as the tariff policy implemented by the United States.
The data were presented in the report “Foreign Direct Investment in Latin America and the Caribbean 2026: Navigating the New Global Context”, in which ECLAC analyzes the behavior of capital flows to the region and the main challenges to maintaining economic dynamism.
According to the study, foreign investment represented an average of 2.8% of the region’s Gross Domestic Product (GDP) and 14% of gross fixed capital formation, maintaining a similar share to the previous year.
The report highlights that most South and Central American countries managed to increase their investment inflows, while the Caribbean saw uneven performance. Brazil remained the leading destination for foreign capital, attracting US$77.676 billion, equivalent to 40% of the regional total, followed by Mexico, which received US$43.221 billion, or 22%. Together, these two countries accounted for 62% of all foreign direct investment in Latin America and the Caribbean in 2025.

Following these economies were Chile, Peru, Colombia, Guyana, Costa Rica, and the Dominican Republic, countries that also registered significant investment inflows, although to a lesser extent.
By sector, services continued to be the main destination for foreign investment, accounting for 53% of inflows. Manufacturing represented 31%, while natural resources attracted 16%. ECLAC highlighted that investments in services increased by 19.5% and those in natural resources grew by 7%, while manufacturing suffered a 17.2% decline, ending three consecutive years of growth.
Regarding the origin of capital, the report indicates that the United States and Europe contributed 67% of the investments whose origin could be identified. However, investments from the United States decreased by 11%, while those from Europe showed an increase during the year.

ECLAC also warned of a reduction in announcements of new investment projects. During 2025, 1,326 initiatives were announced, valued at US$114.1 billion, representing a 10.2% decrease in the number of projects and a 34.3% decrease in the amount committed compared to 2024, reflecting the impact of international economic uncertainty.
The organization recommended strengthening strategies to attract foreign investment through market diversification, boosting investment promotion agencies, greater coordination between trade and productive development policies, and greater regional integration to improve competitiveness and foster more sustainable economic growth.
