FDI Trends in LATAM (2025)
Description
FDI Trends in LATAM (2025)
Summary
Foreign Direct Investment (FDI) in the Latin American (LATAM) region is projected to increase in 2025, sculpted by commodity demand, competing US-Chinese investments, and expanded bilateral trade agreements conductive of FDI inflows. According to GlobalData’s FDI database, opened Greenfield FDI projects are projected to increase by ~1.8% in 2025, preceding consecutive years of growth in 2022, 2023 and 2024.
Bucking the global trend, Foreign Direct Investment (FDI) in the Latin American (LATAM) region is projected to increase in 2025, sculpted by commodity demand, competing US-Chinese investments, and expanded bilateral trade agreements conductive of FDI inflows. According to GlobalData’s FDI database, opened Greenfield FDI projects are projected to increase by ~1.8% in 2025, preceding consecutive years of growth in 2022, 2023 and 2024.
The US’s strategic decision to confine in Latin American relations-to combat Chinese influence and consolidate supply chains-has onset 485 announced Greenfield US projects in the region, between 2023 and 2025 YTD. However, Trumps’s immigration stance and ‘Liberations Day’ tariffs on April 2nd has shaken trade status quo’s and invertedly, accelerated Chinese investment. For instance, Colombia has become the 11th nation to join the BRICS New Development Bank, accompanying Brazil and Uruguay. At the other end of the geopolitical spectrum, President Sheinbaum of Mexico has proposed tariff measures on Chinese trade to appease US interests. Essentially, FDI in Latin America has become increasingly geopolitical and bipolar (poled in Beijing and Washington DC) but the balance of political relations and FDI flows are unstable, unsettling investors.
In 2025, more conversative fiscal decisions in Argentina, Brazil, Chile, Colombia and Peru have somewhat stabilised macroeconomic outlooks. Furthermore, several persuasive liberalisation policies have been introduced. For instance:
On February 18th, President Milie eliminated export duties on ~88% of industrial products (including automotive), boosting export-sector competitiveness and propositioning Argentina as an international manufacturing hub; this decree functions complementary to the broader RIGI (Incentive Regime for Large Investments).
On September 18th, Brazil introduced the Special Taxation Regime for Data Centre Services (REDATA), offering investors tax and import-duty exemptions on datacentre equipment/infrastructure, in exchange for meeting sustainability and R&D commitments.
Nevertheless, systematic issues persist. Organised crimes remains the achilles heel of Latin American development prospects. Homicide rates in Ecuador have spiralled from six per 100 thousand (2018) to 47 per 100 thousand (2023). Additionally, the region’s political fragmentation inhibits its ability to collectively negotiate favourable FDI terms. As tracked in GlobalData’s FDI Database, China’s new $3.5 billion mega-port in Chancay, Peru will broaden export opportunities, but intracontinental transport infrastructure is underdeveloped, and market structures are misaligned, combative to investment.
In terms of announced projects, Latin America’s distribution of inward FDI is concentrated in Brazil and Mexico, recording 609 and 420 announced inward FDI projects, respectively (2023-2025 YTD). Strong alternative investment locations include Chile (121 projects), Colombia (116 projects), Argentina (89 projects) and Costa Rica (77) - announced project numbers are listed in brackets (2023-2025 YTD). Moreover, investments in renewable energy and petrochemical projects dominate Latin America’s incoming pipeline of inward Greenfield FDI, symbolic of the region’s energy potential.
Scope
Summary
Foreign Direct Investment (FDI) in the Latin American (LATAM) region is projected to increase in 2025, sculpted by commodity demand, competing US-Chinese investments, and expanded bilateral trade agreements conductive of FDI inflows. According to GlobalData’s FDI database, opened Greenfield FDI projects are projected to increase by ~1.8% in 2025, preceding consecutive years of growth in 2022, 2023 and 2024.
Bucking the global trend, Foreign Direct Investment (FDI) in the Latin American (LATAM) region is projected to increase in 2025, sculpted by commodity demand, competing US-Chinese investments, and expanded bilateral trade agreements conductive of FDI inflows. According to GlobalData’s FDI database, opened Greenfield FDI projects are projected to increase by ~1.8% in 2025, preceding consecutive years of growth in 2022, 2023 and 2024.
The US’s strategic decision to confine in Latin American relations-to combat Chinese influence and consolidate supply chains-has onset 485 announced Greenfield US projects in the region, between 2023 and 2025 YTD. However, Trumps’s immigration stance and ‘Liberations Day’ tariffs on April 2nd has shaken trade status quo’s and invertedly, accelerated Chinese investment. For instance, Colombia has become the 11th nation to join the BRICS New Development Bank, accompanying Brazil and Uruguay. At the other end of the geopolitical spectrum, President Sheinbaum of Mexico has proposed tariff measures on Chinese trade to appease US interests. Essentially, FDI in Latin America has become increasingly geopolitical and bipolar (poled in Beijing and Washington DC) but the balance of political relations and FDI flows are unstable, unsettling investors.
In 2025, more conversative fiscal decisions in Argentina, Brazil, Chile, Colombia and Peru have somewhat stabilised macroeconomic outlooks. Furthermore, several persuasive liberalisation policies have been introduced. For instance:
On February 18th, President Milie eliminated export duties on ~88% of industrial products (including automotive), boosting export-sector competitiveness and propositioning Argentina as an international manufacturing hub; this decree functions complementary to the broader RIGI (Incentive Regime for Large Investments).
On September 18th, Brazil introduced the Special Taxation Regime for Data Centre Services (REDATA), offering investors tax and import-duty exemptions on datacentre equipment/infrastructure, in exchange for meeting sustainability and R&D commitments.
Nevertheless, systematic issues persist. Organised crimes remains the achilles heel of Latin American development prospects. Homicide rates in Ecuador have spiralled from six per 100 thousand (2018) to 47 per 100 thousand (2023). Additionally, the region’s political fragmentation inhibits its ability to collectively negotiate favourable FDI terms. As tracked in GlobalData’s FDI Database, China’s new $3.5 billion mega-port in Chancay, Peru will broaden export opportunities, but intracontinental transport infrastructure is underdeveloped, and market structures are misaligned, combative to investment.
In terms of announced projects, Latin America’s distribution of inward FDI is concentrated in Brazil and Mexico, recording 609 and 420 announced inward FDI projects, respectively (2023-2025 YTD). Strong alternative investment locations include Chile (121 projects), Colombia (116 projects), Argentina (89 projects) and Costa Rica (77) - announced project numbers are listed in brackets (2023-2025 YTD). Moreover, investments in renewable energy and petrochemical projects dominate Latin America’s incoming pipeline of inward Greenfield FDI, symbolic of the region’s energy potential.
Scope
- This reports provides an overview of FDI trends in Latam. The report will also provide The Latam FDI narrative.
- This report will help you to understand the trends of FDI in Latam.
- The report will also help in understanding the LatamFDI narrative.
- Identify the top sectors and top inward FDI hotspots in the Latam.
Table of Contents
15 Pages
- Executive Summary
- The Global FDI Narrative
- Top Global FDI Hotspots in Q3 2025: Developed vs Developing Markets
- The Latin American FDI Narrative
- Inward FDI Hotspots in Latin America
- Sectoral Disparities: Unpacking the Realities of Latin America’s FDI Activity
- Top Investors
- Appendices
- Methodology
- Contact us
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