The Diplomat
Investments by Latin American companies in Spain reached the figure of 2,835 million euros in 2023, which represents an increase of 138% compared to the previous year and of more than 20,000 million euros over the last decade.
These are the main conclusions of the sixth edition of the Global LATAM 2024 report, led by ICEX-Invest in Spain together with the Ibero-American General Secretariat (SEGIB) and which was presented yesterday by the CEO of ICEX Spain Exportation and Investment, Elisa Carbonell , and the Ibero-American Secretary General, Andrés Allamand.
The report includes the origin, destination and sectors of Latin American investment in Spain and includes, for the first time, an analysis of the expansion of startups, and two studies on public policies for internationalization and the impact of new technologies. such as Artificial Intelligence (AI), in business internationalization. This year also includes the first survey on Latin American Investment in Spain, which evaluates the business climate and the prospects of companies in 2024 and 2025.
According to these data, Spain is reinforced as the second global destination for Latin American investment, behind the United States, and the first in the EU. Furthermore, Latin America is the fourth largest investor in Spain, preceded by the United States, the United Kingdom and France, and ahead of European economic partners of the importance of Germany or Italy. In addition, twenty countries in the Latin American region have investments in Spain and constitute an “important business community” of more than 600 companies and 47,000 direct jobs generated, according to the report.
In total, the accumulated investment from Latin America now amounts to 47,150 million euros in Spain. If Latin American investments in Foreign Securities Holding Entities or holding companies (ETVE) are added to these figures, their volume would be 66,883 million euros, which represents 11% of the total investment received by Spain.
Last year’s figures show that a total of eleven Latin American countries invested in Spain. Specifically, 58% of this investment corresponded to Mexico (1,645 million euros) – the fifth largest investor in Spain -, due to important business projects in the food sector; the chemical industry; the manufacturing of mineral products and construction. The second largest investor was Honduras (501 million), followed by Argentina (196 million) and Uruguay (101 million).
In 2023, in addition, 25 greenfield investment projects were announced in Spain, with an average investment per project of 15.8 million euros, the highest volume in the last decade, which seems to consolidate a trend towards an investment profile greater than in recent years. The average number of jobs created per company in this type of projects amounted to 67, one of the highest figures since records exist.
“Spain is strengthening itself as the second global destination for investment flows from Latin American companies, after the United States, and is consolidating itself as the gateway to Europe for Latin American investment, above all, but also to North Africa,” Elisa Carbonell declared during the presentation of the report, which took place at the ICEX headquarters in Madrid.
According to Carbonell, although direct Spanish investment in Latin America is one of the most defining characteristics of the country’s economy, “in recent years, the complementary phenomenon of Latin American investment in Spain has been taking place,” which is “excellent news.” ” because “collaboration and knowledge exchange can generate synergies and strengthen economic relations between both regions.”
For his part, Andrés Allamand highlighted that the economic data for 2023 exceeded expectations from the beginning of the year and show economic figures that reveal the consolidation of Foreign Direct Investment from Latin America abroad, with 47,743 million dollars, in addition to the increase of investment flows in mergers and the positive evolution of Latin American investments around the world in greenfield projects, the most interesting, in terms of job creation, wealth and high added value and confirm “the region’s commitment to green and digital transition”.
At the same event, the representative in Europe of the Inter-American Development Bank (IDB), Fazia Pusterla, highlighted the bank’s policies in favor of the development of the private sector and entrepreneurship in Latin America and its alignment with EU policies in the region.
