Despite the uncertain international environment and rising geopolitical tensions, foreign direct investment in Latin America & the Caribbean was up 1.7% in 2025, amounting to a total of US$194.233 billion. This according to the annual report Foreign Direct Investment in Latin America 2026, published on June 23rd by the UN’s Economic Commission for Latin America & the Caribbean, ECLAC.
Brazil & Mexico Represent 62% of all FDI Inflows in the Region
Most South American and Central American economies registered higher investment inflows in 2025, while the Caribbean delivered uneven results. Brazil received US$77.676 billion, up 4.8%, equivalent to 40% of the regional total, while Mexico attracted US$43.221 billion, down 5%, comprising 22% of total. The two economies together represented 62% of all FDI entering the region. Brazil’s inflows rose close to levels last seen during the 2010s, while Mexico posted its third-strongest result since 1990, despite a year-on-year decline.
After Brazil and Mexico, the main FDI recipients were Chile, with 7% of the regional total; Peru and Colombia, each with 6%; Guyana, with 5%; and Costa Rica and the Dominican Republic, each with 3%.
FDI by Sector & Origen: Services Up 19.5%, FDI inflows from the Netherlands up 56%
By sector, FDI increased in services, up 19.5%, and natural resources, up 7.0%, while manufacturing fell by 17.2%. As a result, services accounted for 53% of total inflows in 2025, followed by manufacturing at 31% and natural resources at 16%.
Among investments with identifiable origins, 35% came from the United States and 32% from Europe. However, US-origin investment fell by 11%, while European inflows rose, supported by higher investment from the Kingdom of the Netherlands, up with 56%, and the rest of the European Union, up 29%.
Among the 15 largest transactions completed in 2025, the biggest deals involved assets in mining, energy, information and communications, and transport and storage. These included a major lithium mining transaction in Argentina (US$ 6.7 billion).
FDI Project Announcements Down 34.3% in Value
As in other regions, the highly uncertain global environment weighed on investment announcements in Latin America and the Caribbean in 2025, with declines across most countries and sectors. During the year, 1,326 projects worth a combined US$114.1 billion were announced, representing a 10.2% drop in the number of projects and a 34.3% fall in their total value compared with 2024. Without the TikTok megaproject, the fall would have been 56%.
Brazil & Mexico remained the leading destinations for announced FDI projects in 2025, together representing 78% of the total announced value. Brazil saw an increase of 34% in project accouncements (60% of the value of announcements is related to the TikTok data center in Ceará) and Mexico a fall of 43%. Across most countries in the region, the number of project announcements declined compared with 2024. The sharpest decreases were recorded in Guyana, down 92%; Argentina, down 80%; Peru, down 76%; Colombia, down 56%; Mexico, down 43%; and Costa Rica, down 30%.
Most major source countries for companies announcing investments in Latin America and the Caribbean reported lower announced values, with China as the main exception.
The United States remained the second-largest source market, even though the value of its announced projects fell by 62%. European investors also scaled back project announcements significantly, with total announced value declining by around 60%. The Netherlands stood out as an exception, with announced project value almost doubling compared with 2024.
Central America & Panama
In Central America, Costa Rica was the leading FDI destination, accounting for 3.4% of the regional total and receiving more than US$5 billion for the fourth consecutive year. El Salvador and Panama recorded year-on-year declines of 27.3% and 55.0%, respectively, while inflows rose strongly in Honduras, up 192%, and increased more moderately in Guatemala, up 8.8%, and Nicaragua, up 7.6%.
Panama saw a 55% decline in inward foreign investment, from US$ 2086 million dollars in 2024 to US$ 938 million dollars in 2025. The fall was driven mainly by lower reinvested earnings (-80.1%) and intercompany loans (-47.8%), both of which are volatile and partly cyclical. Intercompany loans remained the primary component, accounting for 57% of the total.
Capital contributions (equity) recovered after posting negative figures in 2024, though the amount remains low ($167 million), representing 18% of the total. In contrast, project announcements rose by 57% in 2025, reaching a total of $982 million. This increase is driven by major announcements in the logistics and distribution sector, as well as growth in financial services, paper and publishing, chemicals, and food and beverages.
Foreign Direct Investment in Latin America & the Caribbean 2026 (Summary in English)
Foreign Direct Investment in Latin America & the Caribbean 2026 (full report, Spanish)
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