The FDI issued by Latin America registered in 2023 the highest volume since 2014, if 2022 is excepted (historical record year), registering 47,743 million dollars. During the last fiscal year, Spain stood as the second world destination for investments of Latin American companieswhich grew by 138% in 2023 to reach 2,835 million euros.
These are some of the data collected in the sixth edition of the report Global LATAM 2024led by ICEX-Invest in Spain together with the Ibero-American General Secretariat (SEGIB), presented today by the CEO of ICEX Spain Exportation and Investments, Elisa Carbonelltogether with the Secretary General of the SEGIB, Andres Allamand.
The document includes the origin, destination and sectors of Latin American investment in the world, with a special focus on the landing of companies in Spain. The document includes for the first time a analysis on the expansion of startups; a study on public policies for internationalization and how new technologies, like AI, can contribute to business internationalization. This year also incorporates the first Survey on Latin American Investment in Spain, which evaluates the business climate and the prospects of companies in 2024 and 2025.
During the inauguration of this day, the Ibero-American Secretary General highlighted that the economic data of 2023 have exceeded the expectations of the beginning of the year thanks to economic figures that speak of a year of consolidation of Foreign Direct Investment from Latin America abroad, with 47,743 million dollars; he increase in investment flows in mergers and the positive evolution of Latin American investments in greenfield projects, the most interesting in terms of job creation, wealth and high added value.
Allamand has stressed that “in 2023, this investment modality exceeded 20 billion dollars, highlighting very positive trends such as the determined commitment of Ibero-American entrepreneurs to projects that aim towards green and sustainable transformation.”
As an example, he specified that the three largest greenfield investments in 2023 were allocated to the production of green hydrogen, the extraction of minerals for the development of electric cars and the promotion of electronic commerce and that all this confirms «the region’s commitment to the green and digital transition«.
For her part, the CEO of ICEX has highlighted “that Spain is strengthening itself as the second global destination for investment flows from Latin American companies, after the United States, and is consolidating itself as the gateway for Latin American investment to Europe. above all, but also to North Africa.
In his opinion, direct Spanish investment in Latin America and the links that are created is one of the defining characteristics of the country’s economy and “that in recent years the complementary phenomenon of Latin American investment in Spain has been taking place is excellent news.” . He has concluded, therefore, that “collaboration and knowledge exchange can generate synergies and strengthen the economic relations of both regions.”
During the presentation, the representative in Europe of the Inter-American Development Bank (IDB), Fazia Pusterlavalued the bank policies in favor of private sector development and entrepreneurship in Latin America and its alignment with EU policies in the region.
Strong resilience of Latin American investments
Foreign Direct Investment (FDI) issued by Latin America globally in 2023 amounted to 47,743 million dollars, 38% lower than the 2022 data marked by specific high-volume operations. As a whole, investment interest in Latin America is consolidated at levels higher than before the pandemic.
For this reason, the report considers its evolution notable and highlights the “strong resilience” of Latin American investment last year, since it occurred in a complex economic environment, characterized by high global geopolitical tension and a financial context of high rates. of interest.
In terms of the number of projects, the technology sector remains the main generator of transnational investment initiatives by Latin American companies, due to both the strong expansion of service companies and the expansion of startups that have become large companies. firms.
A strong increase in investment projects related to climate change is also confirmed – which was the sector that attracted the greatest volume of capital in 2023 -, led by large companies in the region that are addressing decarbonization and development processes. clean energies.
Explosion of Latin American startups
This year, Global LATAM incorporates an analysis on the internationalization of Latin American startups, which highlights the explosion of this type of young technology companies, with a “clear global ambition.” In fact, the emergence of startups with international reach “is transforming the business landscape and value creation in Latin America, acting as a key driver of the regional economy,” he says.
He considers that this “revolution” of startups is a “phenomenon” that extends throughout the region – from large countries, like Brazil, to smaller ones, like Uruguay or Costa Rica – and that its high level of early internationalization marks a ” paradigm shift in the region’s business models. He advances, for all this, that “everything seems to indicate that in the coming years we will see a deepening in the degree of internationalization.”
More than 600 companies and 47,000 direct jobs in Spain
In this context, Latin America is the fourth largest investor in Spain, preceded by the United States, the United Kingdom and France, and ahead of European economic partners of the importance of Germany or Italy, according to the VI Global LATAM report, which assesses the « consolidation and the increase in interest in Spain as a destination for Latin American capital” in recent years.
In addition, twenty countries in the Latin American region have investments in Spain and constitute an “important business community” of more than 600 companies and 47,000 direct jobs generated.
In total, the accumulated investment from Latin America now amounts to 47,150 million euros in Spain. If Latin American investments in Foreign Securities Holding Entities or holding companies (ETVE) are added to these figures, their volume would be 66,883 million euros, which represents 11% of the total investment received by Spain.
Last year’s figures show that a total of eleven Latin American countries invested in Spain. Specifically, 58% of this investment corresponded to Mexico (1,645 million euros) – the fifth largest investor in Spain -, due to important business projects in the food sector; the chemical industry; the manufacturing of mineral products and construction. The second largest investor was Honduras (501 million), followed by Argentina (196 million) and Uruguay (101 million).
