A. M. 
Foreign direct investment (FDI) in Latin America and the Caribbean reached 2.8% of GDP in 2024, primarily concentrated in renewable energy, digital infrastructure, and technology-intensive industries, according to the Organization for Economic Co-operation and Development (OECD). This capital flow has become a key factor in driving economic modernization and advancing the region’s productive transformation.
According to the report Latin American Economic Outlook 2025: Driving and Financing Productive Transformation, FDI not only provides financial resources but also facilitates the transfer of technology, knowledge, and productive practices—fundamental elements for increasing productivity and diversifying economies traditionally dependent on low value-added activities.
One of the sectors that has benefited most is renewable energy, driven by the availability of natural resources and the growing global demand for projects aligned with the transition to low-carbon economies. Infrastructureme, investment in digital infrastructure has gained relevance due to its impact on connectivity, competitiveness, and regional integration.
The OECD also highlights the increase in investment in technology-intensive industries, which offer greater potential for generating quality jobs and strengthening innovation systems. However, the organization warns that the impact of these flows could be amplified if the link between foreign investment, productive development policies, and human capital formation is strengthened.
Despite these advances, structural challenges persist, such as high levels of informal employment and the low proportion of jobs in medium- and high-technology sectors, which limit the region’s capacity to fully leverage the benefits of FDI. Furthermore, shallow financial markets hinder access to complementary financing for scaling up productive projects.
In this context, the OECD emphasizes the need for stable regulatory frameworks, coherent public policies, and greater regional cooperation to attract long-term investment. Coordination in strategic areas such as energy, transportation, and digital connectivity would maximize the impact of foreign investment on economic growth.
In conclusion, FDI is emerging as a key pillar for the development of Latin America and the Caribbean. Its focus on strategic sectors offers an opportunity to boost productivity, generate higher-quality jobs, and move toward more sustainable and inclusive growth.
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