Peru became the fifth largest recipient of Foreign Direct Investment (FDI) in Latin America and the Carribean in 2013, a report released by the United Nations Conference on Trade and Development (UNCTAD) showed on Tuesday.
The region's main recipient was Brazil, where FDI inflows amounted to US$60 billion, followed by Mexico and Chile with US$38 billion and US$20 billion, respectively.
Colombia was the fourth FDI largest recipient with US$17 billion, the UN Conference on Trade and Development (UNCTAD) said in its latest World Investment Report.
According to the UNCTD's economist, Stephania Bonilla –Féret, the Andean country received US$10 billion in FDI in 2013, a 17% decrease over a year earlier.
Inflows to Peru were smaller, owing to much lower reinvested earnings as a result of declining prices of the country’s main mining exports such as copper and gold.
Nevertheless, Bonilla-Féret noted FDI is projected to increase next year in Peru and at regional level.
Likewise, the economist noted that FDI flows into Latin America and the Caribbean (excluding offshore financial centers) increased by 6 percent to $182 billion in 2013.
On the other hand, the total FDI figure for the Latin America and the Caribbean region (including offshore financial centers) was $292 billion in 2013, according to the report.
"This 6 percent growth in the region is the combined result of a 64 percent increase to Central America and the Caribbean to $49 billion, and an 6 percent decline to South America to $133 billion", UNCTD's economist said in a call conference from Geneva.
"In previous years FDI growth was driven largely by South America but in 2013 flows to this subregion declined after three consecutive years of strong growth", she added.
Among the main recipient countries in South America, Brazil saw an overall slight decline by 2 percent, while flows into Chile and Argentina declined by 29 percent and 25 percent to $20 billion and $9 billion respectively, due to FDI decrease into the mining sector.
In contrast, FDI flows into Colombia increased by 8 percent to $17 billion, largely on the back of cross-border M&A activity in the electricity and banking industries.