ESPACIO PUBLICITARIO
CARACAS, Friday December 07, 2012 | Update
 
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ECONOMY

Venezuela off the list of major FDI recipients

Investments in Latin America will account for USD 160 billion in 2012, according to the World Bank

EL UNIVERSAL
Friday December 07, 2012  05:30 PM
A survey conducted by the United Nations' Multilateral Investment Guarantee Agency (MIGA) among multinational companies to determine what the major recipients of foreign direct investments are found that there are no reasons to be more optimistic about Venezuela.

When asked to what developing countries they are directing their investments, most of the companies surveyed replied: China, India, Brazil, and Russia. These four countries are top in a list including other 29 nations, among which Venezuela is not present.

Mexico, Colombia, Peru, and Argentina do appear in the list.

This year, developing countries will receive some USD 600 billion in foreign direct investments, a small drop compared with 2011 (USD 640 billion).

The survey found that FDI has tumbled because of the problems facing developing economies, which are the major sources of investment.

Nevertheless, investment inflow in Latin America and the Caribbean is not expected to fall in 2012. Indeed, a slight increase is forecast versus 2011, for a total of USD 160 billion this year.

The report added that foreign investors are worried about likely debt defaults and expropriations, two major factors in risk assessment.

Investments translate into economic growth and employment. Additionally, they are a good means to obtain state-of the-art technology.
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