LatAm and Caribbean tops global FDI league confirming status as investment hotspot
The Caribbean has led the world in FDI growth in the first half of 2012, according to UNCTAD's tenth Global Investment Trend Monitor released on two days ago. FDI inflows to Latin America and the Caribbean increased by 8% in the first half of 2012, over the same period the previous year, as a result of increases in South America (11%) and the Caribbean (14%) that more than compensated for a 14% decline in Central America. Offshore financial centres were the main drivers of FDI growth to the Caribbean.
The Trinidad and Tobago International Financial Centre is already engaging financial institutions to consider consolidating their national and regional back-office operations in Trinidad. South America continues to attract FDI by natural resource endowments, relatively higher economic growth and high interest rate differentials that boost the amount of reinvested earnings and intra-company loans ― two of the three components of FDI flows. Trinidad’s economic and political stability and convenient location make it well-placed to serve the region.