According to preliminary estimates released by UNCTAD today, foreign direct investment (FDI) into Latin America and the Caribbean as a whole in 1999 increased by 32 per cent from US$73 billion to US$97 billion. The region thus was the largest recipient among developing countries in 1999, surpassing South, East and South-East Asia (an estimated US$84 billion B see TAD/INF/2834) for the first time since 1986 (figure 1).
The increase is largely due to the quadrupling of FDI into Argentina (from US$6 billion in 1998 to US$25 billion in 1999) and continued high FDI flows into Brazil (US$31 billion in 1999 compared to US$28.5 billion in 1998).
A significant part of FDI flows into Argentina in 1999 was through mergers and acquisitions (M&As). A single large-scale deal B the acquisition of YPF SA by Repsol SA of Spain with a value of US$17 billion B was most significant in this respect. In Brazil, privatization-related FDI increased: its share in total FDI inflows grew from 22 per cent in 1998 to 28 per cent in 1999.
FDI inflows also increased in Chile, Ecuador and Peru due to cross-border M&As. They decreased in Colombia and Venezuela.
The implications of FDI for development are among the topics that will be considered at the tenth session of the United Nations Conference on Trade and Development, to be held in Bangkok, Thailand, from 12 to 19 February 2000.
