From Caribbean360

The UN Conference on Trade and Development (UNCTAD) said flows to Latin America and the Caribbean increased by 18 per cent, the fourth consecutive year of growth, to an estimated US$294 billion.

NEW YORK, United States, Wednesday January 29, 2014, CMC – The United Nations says foreign direct investment (FDI) to the Caribbean reached a new high last year.

In a report, the UN Conference on Trade and Development (UNCTAD) said flows to Latin America and the Caribbean increased by 18 per cent, the fourth consecutive year of growth, to an estimated US$294 billion.

“While in previous years growth was largely driven by South America, in 2013 Central America and the Caribbean were the main recipients, with increases of 93 per cent and 38 per cent, respectively.

“The US$18 billion acquisition of Grupo Modelo in Mexico explains most of Central America’s increase, while the strong rise in the Caribbean was mainly driven by the British Virgin Islands,” it added

UNCTAD said the increase for developing economies was mainly driven by Latin American and the Caribbean, and Africa; while developing Asia, the world’s largest recipient region for FDI, saw flows at a level similar to 2012.

Overall, the report said FDI flows to developing economies, including the Caribbean, reached a new high of US$759 billion, accounting for 52 per cent.

It said transition economies also recorded a new high of US$126 billion, 45 per cent up from the previous year and accounting for nine per cent of the global total.

UNCTAD said global foreign direct investment (FDI) rose to levels not seen since the start of the global economic crisis in 2008, increasing by 11 per cent in 2013 to an estimated US$1.46 trillion, with the lion’s share going to developing countries.

The report said transition economies experienced a significant 45 per cent rise, reaching a record level of an estimated US$126 billion, with Russia jumping by 83 per cent to US$94 billion, making it the world’s third largest recipient for the first time ever.

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