Washington (United States) (AFP) - Exports from Latin America and the Caribbean could increase by 20% if they adequately reap the benefits of foreign investment, according to a study by the International Monetary Fund released this Monday.

First modification: 11/09/2026 - 19:23

While in the emerging economies of Asia and Europe a 10% increase in foreign direct investment represents an increase of between 1% and 2% in exports, in Latin America "these links are weaker and much more difficult to detect," the text explains.

Coinciding with the global economic forecasts in October, the IMF prepared region-specific reports. In the case of Latin America and the Caribbean, one of the focuses was foreign direct investment.

The Fund recalls that the region received investments worth $3 trillion in 2024, which means 44% of its gross domestic product, compared to 25% in emerging economies in Asia and 21% in Europe.

"However, trade represents around 52% of the region's gross domestic product, compared to 65% in those comparable economies," added this analysis released this Monday.

"Multinational companies provide capital, technology, specialized knowledge and access to external markets, but the use of these benefits depends on the environment in which the companies operate and their ability to absorb them," the experts add.

Companies outside the region invest capital and effort to increase their sales in recipient countries, rather than in a strategy to increase exports from those countries abroad.

"In the region, foreign manufacturing companies typically sell around 81% of their production in the domestic market, compared to 48% in Southeast Asia," they explain.

When countries manage to reduce and clarify their internal regulations and increase trade openness, the benefits are rapid, they say.

In Peru, "the reduction of tariffs on imported machinery and intermediate inputs translated into greater productivity and greater participation in global value chains," they indicated.

Similar impacts occurred in El Salvador, where the government simplified electronic border procedures.

© 2026 AFP

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