Spain is among the main destinations for investment from Latin America, according to the Global LATAM 2022 report.

Report promoted by ICEX-Invest in Spain in collaboration with SEGIB

The publication estimates that the accumulated Latin American investment in Spain now amounts to more than 68.000 million euros, which represents 11% of all foreign investment received by the country.

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Latin American investment in the world confirms its dynamism in 2022, with record levels, 75% higher than the previous year. The region now has eleven among the 100 largest non-financial companies in developing countries with a external presence most prominent.

Spain is among the main destinations of investment from Latin America, according to the Global LATAM 2022 report, promoted by ICEX-Invest in Spain, in collaboration with the Ibero-American General Secretariat (SEGIB). The publication estimates that the accumulated Latin American investment in Spain now amounts to more than 68.000 million euros, which represents 11% of all foreign investment received by the country.

In 2022, they announced 39 investment projects in Spain, compared to 24 in 2021. There seems, therefore, to be a clear investment commitment by Latin American capital to this market, which consolidates its position as a gateway to the European market. Compared to Spain, last year, the investment projects announced by Latin American companies in Germany, there were nine, in France three or in Italy one.

 

FDI issued by Latin America experienced a growth of 75% in 2022, to a historical maximum of $73.000 billion

 

Thus, in 2022, the investment of Latin America in Spain it was 1.101 million euros, 32,9% less than the previous year. This is explained by specific business restructuring operations registered in the previous year. The dynamism is manifested, however, in the substantial increase in the number of greenfield investment projects caused by the arrival in Spain of SMEs and startups from the region.

These are some of the data collected in the Global LATAM 2022 report, which reaches its fifth edition and which has been presented at an event inaugurated by the executive director of ‎ICEX-Invest in Spain, Elisa García Grande, as well as the Ibero-American Secretary General, Andrés Allamand.

In his speech, Elisa Garcia Grande has highlighted that “this report is unique, to the extent that it analyzes a reality that goes unnoticed when analyzing the Latin American economy and the health of its business fabric” and that, furthermore, “it is a little-known phenomenon in Spain-Spain relations.” Latin America". In this sense, he has highlighted that, “since Invest in Spain, we always value Spain's role as a gateway to Latin American investment" and explained how this organization "has programs and activities to channel this interest and bring Latin American investors closer to the opportunities that exist in Spain."

 

Spain consolidates itself as a gateway to Europe, with an increase in the number of greenfield projects in 2022, mainly from operations of SMEs and startups from the region

 

For his part, the Ibero-American Secretary General, Andrew Allamand, stressed: “In this fifth edition, the Global Latam report reveals two very interesting data: the first, that in the year 2022 marked a record for Latin American investments in the world. More than $73.000 billion was reached, the highest figure to date. And the second, that Spain continues to be one of the most attractive destinations for the internationalization processes of Latin American companies, especially for medium-sized companies and startups.” At SEGIB “we hope that this study contributes to detecting new investment opportunities whose benefits extend throughout Latin America,” he stated.

 

Global investment of 73.449 million dollars in 2022

FDI issued by Latin America in 2022 increased at a very high rate, above 75% for the year as a whole, reaching $73.449 million, the highest figure in the historical series. This very dynamic behavior of the investment abroad It is mainly explained by the reinvestment of dividends. This data adds to the strong recovery already experienced in 2021.

 

Brazil, Mexico and Chile They concentrate close to 80% of the FDI (foreign direct investment) issued in the period since the pandemic, a percentage that is maintained in 2022. Brazil, the first foreign investor in the region, invested 2022% more in 90 than the previous year, 30.694 million dollars (40% of the total) and Mexico recovered its traditional cross-border investment rhythm, multiplying the investment flow by 50 to 16.878 million dollars (25% of the total). Chile, for its part, is the only country among the largest in the region that reduced its investment pace in 2022.

 

The sector in which the most projects were carried out in 2022, 108, was information technology software and services, practically double the number of those destined for financial services (57), which occupies second place. However, these investments tend to be of much smaller amounts than those directed at traditional sectors: 10 million on average compared to the 26 million on average in financial services.

 

The report highlights that regional integration through direct investment flows is much more advanced than that of the intraregional trade. In 2018-2021, intraregional FDI represented 65,5% of the total FDI issued by the region, with a clear upward trend compared to previous years. This is a significantly higher level than intra-regional trade, which was below 15% in the same period.

 

During the last few years, it has been It is clear that Latin America has an important role in the process of green transition and decarbonization of the economy. Green bonds are proving to be very relevant to take advantage of this opportunity. From 2015 to the end of 2022, green bonds issued in Latin America amounted to 41.228 million dollars, with a total of 291 bonds from 186 different issuers. Chile and Brazil have been the countries with the highest issuance volumes, while by type of issuer, non-financial companies stand out, followed by sovereign issuers.