SANTIAGO, May 27 (Reuters) - Foreign direct investment in Latin America and the Caribbean fell 16 percent in 2014, more than predicted a year ago, and it will fall further this year, the regional United Nations’ body said on Wednesday.
The Santiago-based Economic Commission for Latin America and the Caribbean (ECLAC) attributed the drop in FDI to slowing economic growth and falling commodities prices.
In 2014, FDI fell to $159 billion, bringing an abrupt end to a decade of red-hot growth for the region, which culminated in a record of just under $190 billion in 2013.
ECLAC said Latin America’s still largely resources-dependent economies should not try to recover former levels of investment, but rather try to attract investment that would help diversify production.
Investment in Brazil, Latin America’s largest economy, stayed fairly steady compared to the prior year, according to ECLAC’s figures, but investment in Mexico - which received a strong boost in 2013 due to Anheuser-Busch InBev’s buyout of Mexico’s Grupo Modelo - fell by around half. (Reporting by Rosalba O‘Brien; Editing by Christian Plumb)