Latin America investment rises 14% but new project pipeline weakens

Foreign direct investment into Latin America and the Caribbean rose by 14% to US$188bn in 2025, while the value of announced greenfield projects fell by around one third, according to UN Trade and Development.

The increase in capital inflows was driven mainly by South America, with Brazil and Mexico accounting for roughly two thirds of regional investment.

Brazil received US$77bn, up from US$63bn a year earlier, placing it among the five largest investment destinations globally. Investment into Mexico increased from around US$38bn to US$41bn.

Commodities, renewable energy, critical minerals and sectors linked to the energy transition continued to attract international investors.

However, the fall in announced greenfield projects suggests a weaker pipeline for new factories, logistics infrastructure, supplier operations and production capacity.

Annual foreign direct investment totals can be heavily influenced by acquisitions, financial transactions and large individual projects. Greenfield announcements often provide a clearer indication of future business formation and industrial activity.

The concentration of investment was also significant. The ten largest recipient countries attracted around 95% of all foreign direct investment entering the region.

For trade finance and corporate banking providers, fewer new projects may mean a slower future pipeline of financing demand linked to construction, equipment, imports, exports and local supplier development.

At the same time, continued investment in energy, commodities and industrial transition could support demand for structured finance, commodity finance and working capital across selected markets.

UNCTAD said governments will need to strengthen logistics and energy infrastructure, improve investment facilitation and connect smaller economies more effectively to regional value chains.

The figures present a mixed picture. More capital entered the region during 2025, but less was committed to building new productive assets that could support future trade and supply-chain expansion.