Up to 20 countries in the Latin American region have investments in Spain and constitute an "important business community" of more than 600 companies and 47,000 direct jobs generated.
Spain is reinforced as the second global destination for investments by Latin American companies, doubling the figure achieved by these companies in the country, with a growth of 138% in 2023, reaching US$3,051 million.
These are some of the data collected in the sixth edition of the 'Global Latam 2024' report, led by ICEX-Invest in Spain together with the Ibero-American General Secretariat (Segib), presented this Wednesday by the CEO of ICEX Spain Exportation and Investment, Elisa Carbonell, and by the Ibero-American Secretary General, Andrés Allamand.
During this day, the CEO of ICEX highlighted that Spain is reinforced as the second global destination for investment flows from Latin American companies, after the United States, and "is consolidating" as the gateway to Europe for Latin American investment. , above all, but also to North Africa.
In his opinion, Spanish direct investment in Latin America and the links it creates is one of the most defining characteristics of the country's economy and that in recent years the complementary phenomenon of Latin American investment in Spain has been taking place, is "an excellent news".
MORE THAN 600 COMPANIES AND 47,000 DIRECT JOBS IN SPAIN
Latin America is the fourth largest investor in Spain, preceded by the United States, the United Kingdom and France, and ahead of European economic partners of the importance of Germany or Italy.
Up to 20 countries in the Latin American region have investments in Spain and constitute an "important business community" of more than 600 companies and 47,000 direct jobs generated.
In total, the accumulated investment from Latin America now amounts to US$50,748.9 million in Spain. If Latin American investments in Foreign Securities Holding Entities or holding companies (ETVE) are added to these figures, their volume would be US$71,988 million, which represents 11% of the total investment received by Spain.
Last year's figures show that a total of eleven Latin American countries invested in Spain. Specifically, 58% of this investment corresponded to Mexico (US$ 1,770 million) - the fifth largest investor in Spain -, due to important business projects in the food sector; the chemical industry; the manufacturing of mineral products and construction.
The second largest investor was Honduras (US$539 million), followed by Argentina (US$210.9 million) and Uruguay (US$108.7 million).
STRONG RESILIENCE OF LATIN AMERICAN INVESTMENTS
As a whole, Foreign Direct Investment (FDI) issued by Latin America globally in 2023 amounted to US$ 47,743 million, 38% lower than the 2022 data, marked by specific high-volume operations. As a whole, investment interest in Latin America is consolidated at levels higher than before the pandemic.
For this reason, the report considers its evolution notable and highlights the "strong resilience" of Latin American investment last year, since it occurred in a complex economic environment, characterized by high global geopolitical tension and a financial context of high rates. of interest.
In terms of the number of projects, the technology sector remains the main generator of transnational investment initiatives by Latin American companies, due to both the strong expansion of service companies and the expansion of startups that have become large companies. firms.
A strong increase in investment projects related to climate change is also confirmed - which was the sector that attracted the greatest volume of capital in 2023 -, led by large companies in the region that are addressing decarbonization and development processes. clean energies.
SATISFACTION WITH THE INVESTMENT CLIMATE
Latin American investors show high satisfaction with the investment climate in Spain and highlight language and cultural proximity as key factors for establishing themselves here (78% of the total companies surveyed), along with geographical location and proximity to markets such as Europe or Africa. (70% of the total).
In 2024, about 74% of participants expect to increase their investments, while about 68% also maintain this objective in 2025. Something similar occurs with the expectations of increasing their turnover in these next two years, in the case of a 70% and 64% of the companies surveyed.
Finally, around 70% of participating companies estimate that they will increase their workforce and around 60% of companies that export also expect their sales to other markets to grow in the period 2024-2025.
