Foreign investment falls -21% despite growth forecasts

Santiago, Chile (EFE).- Direct foreign investment (FDI) into 16 Latin America and Caribbean countriesfell 21% in the first half of 2015 compared with the same period last year, witha total of US$88.7 billion, the UN Economic Commission for Latin America andthe Caribbean (ECLAC) said Thursday.

The regional economicentity said FDI into República Dominicana (-21 %) Among the factors behind the decline in FDI figurefalling investments in mining and hydrocarbons on lower global prices, aslumping China economy and the decline of the region.

The data releasedyesterday are from the ECLAC´s yearly update of the main figures in the report:"Foreign direct investment in Latin America and the Caribbean," whoselast edition was launched in May.

While nearly all countriesevaluated have reduced FDI, the most significant drop in the region was Brazil’s,where a significant portion of foreign investment has traditionally been aimedat developing activities for the domestic market.

The fall in domesticdemand and negative growth prospects determined Brazil´s outcome in the first half,the ECLAC said in a statement.