Thanks to its fast-growing economies, sought-after raw materials and improved macroeconomic conditions, Latin America has been the object of large capital inflows in recent years. Some was part of short-term speculative bets – which, in some cases in Brazil, caused as much trouble as it did success – contributing to the strong value of the real and diminished competitiveness of Brazilian exporters. Many investments, however, were long term and went beyond the highly priced commodity and oil and energy sectors.
Between 2005 and 2010, Latin America’s financial services industry has attracted a total in excess of $7bn through 416 greenfield foreign direct investment (FDI) projects – which excludes mergers and acquisitions. Brazil is the leading destination for financial services FDI, some distance ahead of followers Mexico, Colombia, Chile and Argentina.
