Latin America has experienced a year-on-year decline in the financial services sector since 2011. Data from greenfield investment monitor fDi Markets recorded a total of 549 FDI projects between January 2011 and December 2016. In this time, the region attracted a total capital investment of $29.16bn and created 36,128 jobs.
The number of projects created in Latin America dropped by 9.02% from 2011 to 2012. The biggest dive was in 2013, when projects dropped by 32.06% to 89 projects. The downward spiral continued in the region, as it saw a drop of 10.11% in 2014, 26.25% in 2015 and finally by 22.03% in 2016 to 46 projects.
Similarly, there was a significant decline of 70.54% in the number of jobs created from 2011 to 2015 in Latin America, although, there was a healthy increase of 86.22% in 2016 to 4434 jobs.
Capital investment also saw a steady decline in the six-year period. There was an overall decrease of 66.12% from 2011 to 2016.
The region’s top destination countries were Brazil, Mexico, and Colombia, which attracted 126, 89, and 77 projects, respectively. The top source countries were Spain and the US, both creating 106 projects in the region, as well as the UK with 47 projects.
The parent companies that created the most projects were Spain-based Global Exchange with 26 projects; Spain-based Santander Group with 24; and Venezuela-based Banesco Banco Universal with 17.
The first quarter of 2017 saw a decline of 18.18% compared to the same period in 2016. The second quarter saw a similar figure, with a decline of 16.66% compared to the second quarter of 2016, so it seems likely the declining trend will continue to the end of 2017.