SANTIAGO (Reuters) - Foreign direct investment in Latin America fell 21 percent in the first half of 2015 compared to a year ago, dragged down by the end of the commodities boom, a slowdown in China and a tumbling Brazilian economy, according to the United Nations.
The slide affected almost every economy in the region, statistics from the Santiago-based Economic Commission for Latin America and the Caribbean (ECLAC), the UN’s Latin American arm, showed on Thursday.
Overall investment stood at $89 billion, compared to $113 billion for the first half of 2014.
Brazil received some $42 billion between January and August, down 36 percent from a year ago.
“Although nearly all the countries saw FDI flows reduced, the total fall for the region is concentrated in Brazil, where a significant part of foreign investment has been traditionally orientated towards the development of activities for the domestic market,” said ECLAC.
Latin America has been hit hard by plummeting prices of its commodity exports such as oil, iron ore and copper. Brazil’s recession is expected to last into next year, a Reuters poll showed on Thursday.
Reporting by Rosalba O'Brien; Editing by Diane Craft