A. M. Latin America and the Caribbean experienced a 12% drop in foreign direct investment (FDI) flows during 2024, in a global context marked by economic uncertainty, geopolitical tensions and trade fragmentation, according to the World Investment Report 2025 of UN Trade and Development (UNCTAD). Although new project announcements increased in countries such as Argentina, Brazil and Mexico, the region failed to buck the global downward trend.
Globally, FDI fell by 11%, representing the second consecutive year of decline. Although the total amount of investment reached US$1.5 trillion, this apparent growth is mainly due to volatile financial movements within certain European economies, which are used as intermediaries in the transit of capital.
In the case of Latin America, the decline in flows reflects a less favorable environment for financing strategic sectors. Despite efforts to attract investment, many countries continue to see capital concentrated in low-impact development activities, while key sectors such as infrastructure, energy and technology remain neglected.
UN Trade and Development warns that falling investment in sectors aligned with the Sustainable Development Goals (SDGs) could deepen structural inequalities in Latin America. This reality contrasts with the 23% growth recorded in North America, largely driven by the United States.
UNCTAD’s Secretary General stressed that the current system channels resources where it is easiest, not where they are most needed, and called for aligning public and private investments with development goals. This proposal will be one of the central themes of the Fourth International Conference on Financing for Development.
The report emphasizes the need to reform investment systems to ensure that Latin America and other developing regions are not left behind, especially in a context where long-term investor confidence has been eroded by high-risk global factors.
